Has my company lost its LAQC status?

Our Experts Answer:

The question of whether your company has lost its LAQC status as a result of your move is complex. A NZ incorporated company would become tax resident in Australia if it carries on business in Australia and its central management and control is from Australia or the voting power is contoled by persons resident in Australia. In the case on an LAQC company which might own NZ rental property it is debatable as to whether that would amount to the carrying on of a business in Australia. It is probably best though to assume that the company has lost it's LAQC status and proceed accordingly. This would typically mean passing the asssets out in conjunction with placing the company into liquidation. You should seek specific tax advice both in NZ and Australia before taking any action.

Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.