Inland Revenue
Te Tari Taake
6 May 2019
S Devoy
fyi-request-10001-ee2bd 15 l@req uests. fyi .org. nz
Dear S Devoy
Thank you for your request made under the Official Information Act 1982 (the OIA),
received on 4 April 2019. For the period January 2003 to December 2018 (inclusive),
you requested the following:
•
The number of LAQC's and LTC's registered per annum up to the present;
•
the $ value tax losses per annum relating to residential properties owned by
them; and
•
the total number of residential properties owned by them per annum.
Information being released
The table in appendix 1 attached shows information relating to the number of loss
attributing qualifying company (LAQC) and look through company (LTC) entities based
on active tax returns filed by taxpayers. This gives a more accurate result than providing
the number of all registered LAQC and LTC entities. The income data is taken from net
business earnings on the IR4 (LAQC) or IR7 (LTC) tax returns. Since these returns do
not require descriptive details of rental activity, the correct taxpayers are identified by
industry code and an element of commercial or other non-residential rental activity may
be part of this figure. I have also provided net rental profits to produce a better overall
picture of total net rental income.
In 2012 the LAQC entity type was withdrawn. Previous LAQC entities either remained as
ordinary qualifying companies (without the loss flow-through), or shifted into other
structures, such as the newly established LTC entities which have flow through of profits
as well as losses to their underlying owners. Because of the 2012 changes (which also
removed building depreciation as an allowable deduction) there was a downwards shift in
rental loss flow-through.
LAQC and LTC entities are granted 18 months from the end of the financial year (31
March) to file their tax returns, giving taxpayers until September 2019 to file their
2017 /18 financial year returns. Therefore, your request for information relating to the
number of LAQC and LTC entities past March 2017 is being refused under section 18(g)
of the OIA as the information is not yet held by Inland Revenue.
Information to be withheld
Inland Revenue only collects data on net financial results from owning properties, not
the number of properties owned by taxpayers. Therefore, your request for information
relating to the total number of residential properties owned by LAQCs and LTCs is
refused under section 18(g) of the OIA, as the information is not held by Inland
Revenue.
Ref: 190IA237
www.ird.govt.nz
