'The con' - broken bits in the income tax consolidation rules presentation

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 presentation 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

Author profile

Duncan Baxter

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

More by Duncan R C BAXTER

• Losses and consolidation - Entries and exits paper - 27-May-2009
• Less than the sum of the parts: Tax losses of consolidated groups paper - 01-May-2009
• Credit crunch and distressed markets paper - 13-March-2009
• Tax issues for foreign institutional investors paper - 10-October-2008
• 'The con' - broken bits in the income tax consolidation rules paper - 11-August-2007
• Loans and financial arrangements - international issues paper - 16-February-2006
• Context and carve-outs paper - 12-October-2005
• Compliance tricks and traps seminar paper - 22-June-2004
• Mergers and Acquisitions: Tax Due Diligence under the Tax Consolidation Regime convention paper - 12-September-2003
• Multiple Entry Consolidated Groups and their Members seminar paper - 19-July-2003
• Accounting implications - 16-April-2002
• Workshop two: consolidations - losses - 23-February-2001
• Corporate Distributions Workshop - 27-October-1999
• International aspects of structured finance - 07-October-1999

Click here to expand/collapse more articles by Duncan R C BAXTER.