LAQC and working holidays

[dasphinxter]

Hi everyone, i have tried looking for the answer myself but could not find a direct answer to this. I am the director and major shareholder of my LAQC and want to know how i can safely go on a working holiday eg work in the UK to pay my way while im over there with out effecting the company.

Can i stop my nz income and accumulate losses until i return an start working in NZ again?

Do i have to declare my overseas income? I read something about being double taxed when using this option.

Can i loose my LAQC status and have to pay all sorts of penalties to get things back to how they were before i left, once i return.

or none of the above.

If someone has already been through this or knows what actually happens your input would be much appreciated.

Also if someone could comment on the same situation with a family trust setup (laqc shares were transfered into a trust).

Alex.

[lissie]

Lots of questions there! We are in the same situation have LAQC in NZ now living in Perth but travelled for most of last year without income.

What do you mean accumulate losses - you still have to make the loan payments you are committed to - if this is a problem Isuggest you refinance before you go - its not impossible at a distance just a bit more of a pain with timezone differences and having to exchange faxes
You will almost certainly still be NZ tax resident so your LAQC loss is basically eaten up by the credit you will get on the tax you paid in the UK - depends on who has got the higher tax rate NZ/UK Your tax losses in NZ will accumulate against your name with IRD - you can't access them until you return home and start earning money in NZ
You definitly have to declare your UK income to IRD - you really dont want to piss them off!
You won't loose your LAQC status - the majority of directors/shareholders should be NZ resident - otherwise you become an overseas company and have to have audited accounts this is a Companies Office requirements not an IRD requirement - what they don't know ...
You will need to maintain a local address - PO Box is good!
I know nothing about trusts.
We have just had to update our financials because on of our original loans expired - they didn't care that we were working in Perth - maybe check that none of your loans are due when you don't plan on working!

[stacrafty]

I have been back in NZ for a year after 2.5 in teh UK. I was in the exact situation you have mentioned above. This March will be my first year of full NZ income I will have and will be claiming approx 4 years worth of LAQC losses on it.
afaik I was still a NZ resident cause I still had significant interests (IP's) here.

[fred333]

That is a great point. I would make sure to reevaluate everything to make sure you are missing anything.