12 Mar 07 Consolidation: changes announced in October 2006The ATO has published details of administrative arrangements that will apply in relation to changes announced by the Minister for Revenue and Assistant Treasurer in his press release No 2006/076 of 27 October 2006: see 2006 TAXVINE No 42 (5) (3 November 2006). These changes will allow ongoing consolidated groups and multiple entry consolidated groups to restructure with minimal tax consequences. Apart from certain integrity measures, a group conversion will be a seamless transition for the ongoing group. The changes will apply to conversions that occur on or after 27 October 2006.
The administrative treatment is stated as follows:
"Taxpayers may anticipate a change to the existing law when lodging a return or activity statement. When in place, the proposed change will not impact on a taxpayer’s taxable income and consequently no implications arise for the Commissioner under the Financial Management and Accountability Act 1997.
Some taxpayers, due to their circumstances, may wish to apply the existing law until the new law is enacted. These taxpayers will need to review their position when they lodge their next tax return and activity statement if the proposed law is then in place. Integrity measures linked to this proposal may lead to debit amendments for certain taxpayers because of the final form of the legislation."
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