Impact of not consolidating presentation

Published on 10 Sep 04 by VICTORIAN DIVISION, THE TAX INSTITUTE

Tax consolidation is entered into by way of an irrevocable election. Many SME corporate groups have delayed the consolidation decision or have chosen not to consolidate.

This presentation uses a case study approach to analyse the consequences of not consolidating and issues arising from groups operating outside the consolidation environment, including:
- recap on what was lost including no access to group losses and rollover relief for CGT/UCA assets and intra-group dividend issues
- income equalisation strategies using passive and active income
- the transfer of assets including trading stock, loans, GCT and UCA assets
- the anti-avoidance rules including value shifting considerations and Part IVA
- the impact on cash flows, stamp duty and GST.

Author profile

Craig McCormick

Craig is an experienced accountant and tax consulting professional specialising in working with large international businesses, listed groups and large privately held businesses. He leads Grant Thornton's national research and development tax specialist team. In this role he works with clients involved in innovation and assists in securing R&D tax concessions, other innovation related government incentives and management of IP. - Current at 14 September 2010

More by Craig MCCORMICK

• Loans - an accounting aspect paper - 20-September-2007
• Loans: an accountant's view paper - 18-July-2006
• Impact of not consolidating convention paper - 10-September-2004

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