LAQC changes confirmed

Announcing the new measures Finance Minister Bill English said, "These changes will reduce the opportunities for well-off people to structure their affairs for tax purposes."

"Changes to the treatment of QCs and LAQCs will ensure that owners cannot claim a tax deduction on losses at a higher rate than they pay on profits."

The new measures are outlined in a Supplementary Order Paper (SOP) that will introduce several Budget 2010 tax measures to the Taxation (GST and Remedial Matters) Bill, which is nearing its final stages in Parliament.

According to WHK tax principle Scott Mason there is little that is new in the document.