17 Jan 088 Tax consolidation rules following certain CGT roll-oversIn a media release issued on 11 January 2008, the Assistant Treasurer, Chris Bowen, announced that the Government will be moving to allay concerns in industry regarding the previous Government’s announced changes to the consolidation tax cost setting rules when an entity joins a consolidated group or multiple entry consolidated group (MEC group) following a CGT roll-over affecting the membership interests of the joining entity.
“The previous Government’s announcement has caused significant disruption to the operation of Australia’s capital markets and has effectively prevented any new scrip for scrip transactions”, Mr Bowen said. “It is quite clear that there was insufficient consultation with the private sector by the previous Government in relation to this decision. I have asked the Treasury to consult with the private sector about how this situation will be resolved. This situation is quite urgent, it is necessary that this consultation be conducted expeditiously, and be completed by mid-February."
For a copy of the media release, No 2008/001, go here