In late 2005, following the passage of the Companies Act, the Ministry of Economy, Trade, and Industry pressed the Ministry of Finance to treat GKs as "pass-through entities" in which only company profits would be taxed. However, the Ministry of Finance refused to allow such treatment. As a result, many new companies are expected to use the more prestigious KK business form rather than the GK business form, especially given the looser regulation of KKs under the new law. The only limited liability business which receives pass-through tax treatment in Japan is the limited liability partnership.