"The Troubled Teen Years": Is the repeal of New Zealand's LAQC regime required?

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Title "The Troubled Teen Years": Is the repeal of New Zealand's LAQC regime required?
Author Freudenberg, Brett David
Journal Name New Zealand Journal of Taxation Law and Policy
Year Published 2008
Place of publication Wellington
Publisher Thomson Brookers
Abstract The possible repeal of the Loss Attributing Qualifying Company (LAQC) regime in New Zealand has been raised again. This most recent announcement was canvassed in the discussion document concerning the introduction of a new limited partnership with tax transparency to facilitate venture capital investment. While the repeal of the LAQC regime has not eventuated, this article will argue that the rules for LAQC members utilising allocated losses are inadequate. This means that the LAQCs could compromise the integrity of the New Zealand tax base. Indeed, it will be argued that the loss restriction rules for the new limited partnerships are also inadequate. For both types of tax transparent companies, this article argues for the introduction of a broad loss restriction rule limiting the utilisation of allocated losses to a member's financial exposure amount. Also, important differences in the governance regimes between the two transparent companies are identified to support the continued availability of LAQCs.
Peer Reviewed Yes
Published Yes
Publisher URI http://www.brookers.co.nz/catalogue/title.asp?p=722
Copyright Statement Copyright 2008 Thomson Legal & Regulatory Limited. This is the author-manuscript version of this paper. Reproduced in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Volume 14
Issue Number 1
Page from 67
Page to 97
ISSN 1322-4417
Date Accessioned 2008-06-20
Language en_AU
Faculty Griffith Business School
Subject PRE2009-Taxation Law
URI http://hdl.handle.net/10072/21662
Publication Type Journal Articles (Refereed Article)
Publication Type Code c1

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