Two trusts are 50% shareholders in an look through company (LTC) each. Can the trust retain their 50% LTC profit or does the profit have to be distributed to an individual (beneficiary)?
Read MorePlease advise the repercussion where all the shareholders and directors of a NZ company are non resident for tax.
Read MoreA company has sold its business. The funds from the sale have been taken out by the shareholders without liquidating the company. The company charges interest on the shareholders’ overdrawn current accounts. There was no capital distribution. Is there a deemed dividend situation in this case?
Read MoreIf a company lends money to a trust, is the company required to accrue interest income? (if so, the trust will mirror the entry as an interest expense). The shareholder and director of the company is also a trustee of the trust.
Read MoreA lawyer client who currently trades in his own name is looking to incorporate a company and trade from that company.
1. Does a formal valuation need to be made of his existing business to enable a value for the transfer to the company or would something less formal suffice?
2. How do you differentiate between “A” and “B” class shares (voting and non voting shares) when you incorporate?
Read MoreI have a client who has an ordinary company with A & B as directors and 50/50 shareholding which has losses carried forward. They have another company which is a look through company (LTC) with the same shareholding but one of them is a director. Can we do subvention payments to offset the profits in the LTC company?
Read MoreIn its final year of trading, a company issued a dividend to clear the shareholder current account overdrawn balance. The 5% RWT on dividend paid by the company will be refunded by the IRD to the shareholder who is not on the highest marginal tax rate. Can company choose not to pay the RWT?
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