Kim has acquired 50% of the shares owned by Betty in two companies, LTC Ltd and Non-LTC Ltd, which have accumulated losses available to be carried forward and set off against the profits of a future year. LTC Ltd is a look through company and Non-LTC Ltd is a not a look through company. Kim also has shares in another profitable company, Kim Ltd.

Required:

Kim has asked whether he could access the losses of these two companies that are carried forward by either consolidating or amalgamating them with Kim Ltd.

Answer rating: 100% (QA)

No Kim cannot directly access the accumulated losses of LTC Ltd and NonLTC Ltd by either consolidati... View the full answer