Published on 11 Aug 07
by WESTERN AUSTRALIAN DIVISION, THE TAX INSTITUTE
Various aspects of the income tax consolidation rules in Part 3-90 of the Income Tax Assessment Act 1997 (Cth) still do not work properly. This paper focusses on a number of these aspects, including:
the operation of the company loss recoupment rules as loss transfer tests
the modifications to the 'same business test' for income tax consolidated groups
peculiar outcomes under the 'single entity rule'
the private ruling system and restructures of consolidated groups
weaknesses in the Tax Sharing Agreement and 'clear exit payment' rules
anomalies in relation to CGT event L5 and the acquisition of a consolidated group
the exclusion from CGT event J1 in relation to entities that leave:
income tax consolidated groups
multiple entry consolidated (MEC) groups
These aspects also provide a context within which the paper will consider a selection of recent legislative amendments and ATO rulings.
Duncan is a Partner at Blake Dawson. He was previously a Partner in the International Tax Group of a global accounting firm. Duncan served as one of the three private sector representatives on the Federal Government’s Tax Design Review Panel. Current at 05 May 2009
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.