09 Aug 077 Consolidation updateThe ATO has advised that in the Consolidation update of 9 July, it was indicated that there was to be a change in the administrative treatment relating to errors arising from the calculation of tax cost setting amounts (TCSAs).
That change has now taken place with the release on 1 August of Taxation Ruling 2007/7 - Income tax: consolidation: errors in tax cost setting amounts of reset cost base assets, available here .
The head company of a consolidated group is now required to notify the ATO of errors discovered in the calculation of the TCSA by completing and lodging the appropriate notification form as soon as practicable after becoming aware of the error(s).
Notification forms and instructions have been incorporated into the Consolidation: notification forms and instructions section on the Consolidation web page, available here .
These changes apply prospectively from 1 August 2007.