Companies running a Loss Attributing Qualifying Company (LAQC) will surely need to be aware of the significant tax changes becoming effective on 1 April 2011. From this date, LAQCs will have six months to transition to the newly created entity called a Look Through Company (LTC). The change has come from last year’s Government Budget and prevents perceived tax abuse through the use of the company tax rate which is lower than the personal rate. The key difference between the LTC and the LAQC is that the new LTC will have to pass on both profits as well as losses to shareholders. Previously, an LAQC would only pass on losses in order to avoid paying higher tax. If a company does not wish to transition to the new LTC, it can either remain as a Qualifying Company (and not pass on losses to shareholders), restructure to a new entity, or be taxed as an ordinary company.