Look Through Companies (LTC's)

Question 1

Which of the following statements are true?

i. LTC’s have all obligations and benefits under the Companies Act.
ii. LTC profits are taxed at 28%.
iii. LTC losses are retained in the LTC.

Answer 1

LTC’s have all obligations and benefits under the Companies Act.

Question 2

An LTC files which type of income tax return?

Answer 2

IR7

Question 3

LTC’s:

Answer 3

are treated like a partnership for tax purposes.

Question 4

LTC’ pass __________, gains, deductions, _____________ and tax credits to shareholders
in _______________ to their shareholding.

Answer 4

income, losses, proportion.

Question 5

LTC’s:

Answer 5

do not maintain an imputation credit account.
may only deduct a salary for a working shareholder if the payment was under a written
contract of employment.