LAQC tagged posts

IRD Continuing LAQC Investigations

October 31, 2008 New Zealand FinanceNew Zealand Taxation  No comments

The Inland Revenue Department (IRD) is continuing their investigation into the sale of private homes to Loss Attributing Qualifying Companies (LAQC) involving a mail out of over 45,000 letters to LAQC directors.

The issue at hand was first brought up by the IRD in a media release in the July of 2004, when the IRD voiced the concerns and objections to the possible practice of the selling of private residential property to a LAQC and renting it back, in order to claim a tax loss. While the IRD acknowledged that the mere selling and renting of a house from an LAQC does not constitute tax avoidance, and also that every suspected case of tax avoidance needs to be treated individually, they did release a general guideline of markers that they use to determine suspicion.

An individual who owns a...

Read More