Qualifying Companies (QCs) – The ticking time bomb in your client base (webinar)

The use of QCs has been superseded by LTCs but there are still a number of QCs that existed prior to the LTC regime and continue to
exist today. The webinar will review the general rules and principles applying to QCs and then consider 5 specific questions that have been
raised recently. Specifically, we will consider:

  • Background
  • Criteria to be a QC
  • Taxation of QCs
  • 5 specific questions related to:
    • Effective interest in a QC
    • Capital & revenue distributions and imputation
    • Fully imputed dividends & dividend stripping,
    • Distribution of a capital profit from the sale of a property
    • Interest deductibility on funds borrowed by a company to pay dividends

 

Upon satisfactory completion of this activity you will be able to:

  • understand the rules and principles better
  • identify relevant tax issues
  • have a greater awareness of tax implications in each of the areas covered

 

Total CPD Hours: 1

 

Suited to:
This course will be suited to intermediate through to advanced accountants in public practice who are dealing with qualifying companies.
It will also be suitable for accountants employed by qualifying companies.

 

PRESENTER

Mike Hadwin, Director, Symmetry Advisory Ltd

Mike is a regular presenter for TEO Training for 18 years. You’ll learn from Mike’s 30-plus years of tax experience as a public CA and
facilitator. His clear presentation style enables you to quickly understand and apply practical learning concepts to common situations
you may face in your role. Mike has a number of charities as clients and has assisted some at a national level with tax issues.

  • 27 May 2020
    2:00 pm - 3:00 pm

Comments

  1. Mark Hubbard

    I’ll be booking Mike’s course today, but my real weakness with QC’s after all this time is the tax consequences of revoking a QC election: I know you lose imputation credits (?) so need to issue a dividend, but I can’t find through the literature or the grandfathered legislation if a revocation looses QC (former) losses carried forward? Any chance of covering this: I’ve been waiting for a QC course but none so far are covering leaving (which I suspect many are wanting to do by now).

    1. Rob McLennan Post author

      Hi Mark,

      Here is Mike’s response to your question:

      “I’m not covering this situation. I have done some research and also can’t find any rules for losses on the revocation of the QC status.

      As a result I assume that they continue to carry forward as ordinary company losses.

      This doesn’t seem unreasonable as QC losses haven’t had preferential treatment since 1 April 2011.”

      Let us know if there’s anything else we can help you with.

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