Minister of Revenue, Peter Dunne has announced that the Government will introduce new rules preventing loss attributing qualifying companies (LAQCs) from passing losses on to their shareholders. The move follows public consultation on proposals for reforms to the tax rules announced in Budget 2010 for qualifying companies and LAQCs. In response to feedback from small businesses, the Government has also decided to review the tax rules for dividends, with a view to simplifying them for closely held companies. The legislation for the new rules is expected to be enacted before the end of this year and will come into effect from 1 April 2011.

Click here for the press release

Click here for questions and answers on the reform proposal