Partnership tax changes planned for 2007 bill
Legislation codifying the tax rules on general partnerships and bringing in new tax rules on limited partnerships is planned for introduction next year, Revenue Minister Peter Dunne announced today.
"A discussion document released in June proposed several changes to the relevant tax rules, to align them with world's best practice," Mr Dunne said.
"We are considering the submissions received, most of which welcomed the government's aim of clarifying and codifying partnership tax law and ensuring the proposed limited partnership vehicle is taxed as a partnership.
"We expect to make final policy decisions by the end of the year, with resulting changes to be part of a wider bill next year that also introduces modern regulatory rules for limited partnerships.
"Many of the submissions on the tax proposals raised questions about the future of the loss attributing qualifying company rules, which the discussion document had mentioned might be reviewed in the future.
"While this is clearly a live issue, it would be premature to consider the future of the LAQC rules until we know the final legislative form of the partnership tax changes. Once that is clear, there will be consultation on the LAQC rules," Mr Dunne said.
Contact: Ainslie Fenwick, Tax Advisor, Tel: 04 471 9728