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Tax Office begins review of business consoldiations.

Publication date: 15 Aug 05 | Source: WEEKLY TAX BULLETIN

Issue: No 33 5 August 2005

Pages: pp. 1259-1260


Many corporate groups have managed to finalise the saga that was the forming of a consolicated group, only to find themselves receiving notices from the Tax Office beginning a review of the consolidation process.

The letters contain a long list of questions requesting details on the process of consolidation, corporate procedures on consolidation decisions, and the calculations for arriving at and allocating any allocable cost amount and for determining the "available fraction" for any tax losses.

Two primary issues that the Tax office appears to be focused on are the ownership structure of the groups and the valuations of the assets with in the groups.

It is imperative that groups review the ownership of their companies to ensure that the corporate structures are correctly documented, as one of the first tasks of the Tax Office personnel is to search ASIC files.

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Author profile

Nicholas Gangemi CTA
Nick is a Barrister on Second Floor Selborne Chambers. He works in tax and commercial litigation, tax disputes and the provision of tax and legal advice. Nick’s areas of expertise include corporate tax, international tax, high net worth individuals, trust law, and mergers and acquisitions. - Current at 22 March 2017
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