This blog will examine the tax considerations in relation to loans to participators. This anti avoidance measure attacks the practice of withdrawing profits from close companies in the form of loans. Without this measure it would be possible for shareholders in close company to borrow money from the company instead of taking remuneration or dividends.
Pearse Trust Blog
Today we are going to examine the New Zealand Limited Partnership (LP) and the New Zealand Look Through Company (LTC), both of which are particularly distinguished due to their flow through tax status.
1. New Zealand Limited Partnership
The New Zealand LP is a partnership structure similar to those established in overseas jurisdictions and can be used for a variety of purposes such as holding and trading assets worldwide. They enjoy separate legal ownership from their owners, who are referred to as partners.Read More
The Irish Government has courted international controversy with its proposal for a preferential tax regime for income derived from intellectual property, known as the Knowledge Development Box (“KDB”). This blog post will discuss the outline of the proposal.
The proposed KDB is in line with the commitment contained in the Road Map for Ireland’s Tax Competitiveness, which was published in October 2014 alongside the Irish Government’s Budget for 2015. It was noted in the document that the global economy is evolving and business assets resulting from investment in “knowledge-based capital”, such as intellectual property, are becoming a significant driver of economic growth in OECD economies.Read More
The New Zealand Look-Through Company is an ideal alternative to a limited partnership structure, such as the New Zealand Limited Partnership, for clients who are looking for a fiscally transparent corporate entity, but prefer the familiarity of a limited liability company.
The Look-Through Company provides investors with the option of benefiting from partnership-style transparent tax treatment by electing to become an LTC, subject to approval by the Inland Revenue Department of New Zealand.Read More
Following on from our previous blog Changes for New Zealand Companies –Companies Amendment Act 2014, the Companies Office have released their timeline for implementation of the new rules. The important changes will be phased in throughout 2015 and the prescribed timeline should give all companies sufficient time to prepare to meet their new compliance obligations.
Companies Amendment Act 2014The new rules are aimed at preventing the misuse of New Zealand companies by enhancing the powers of the Registrar and improving the quality of information by the Registrar. This will include a new requirement to have at least one resident director and additional disclosure by companies in respect of their ultimate ownership. Read More
Can the body of international tax rules, which have developed in such an unruly and illogical fashion since the early 20th century, really be transformed into a coherent whole within the space of a few years? The Organisation of Economic Development and Cooperation (“OECD”) seems to think so. Recent developments however, suggest that the OECD may have bitten off more than it can chew with its BEPS project. Read More
In a previous blog we examined the role and powers of trust protectors. We will now examine the relationship between protectors and trustees.
In recent years, settlors are increasingly appointing protectors on the settlement of trusts. There are a number of reasons for such an appointment:
- They may have yet to build a relationship with the proposed trustee;
- They wish to safeguard their wishes on settlement of the trust; and
- To oversee the proper administration of the trust.
You may not be aware of this, but, further to a joint declaration signed in 2013, a ‘Dual Year’ celebration between the UK and Mexico, designed to enhance cultural and economic relations between the two countries is currently underway.
More specifically, the Governments of both countries have designated 2015 as the year of Mexico in the UK and vice versa the year of the UK in Mexico.Read More
Lawmakers across the political spectrum in the United States are generally agreed that the tax code is in need of an overhaul. A comprehensive tax reform plan that both parties in Congress can rally around is proving very elusive, however.
A Complex Code
It has been less than 30 years since the last major simplification of the tax code, and the National Taxpayer Advocate says that the total time burden of tax compliance has reached 6.1bn hours. That is the equivalent of approximately 3.05m employees working 40-hour weeks year-round with just two weeks off. The total cost of complying with the tax code is calculated at USD224.3bn a year.Read More
On 7 May 2015, a General Election will be held to elect the 56th Parliament of the United Kingdom.
Currently, general consensus and polling results suggest that the outcome will be that of a hung parliament with no single party securing the necessary majority required to form the Government. As occurred in 2010, a coalition government of 2 or more parties would be the expected outcome in such an event.
The following represents a short overview of the policies put forward by some of the main parties with regards to taxation and related matters.Read More