The Government will improve the operation of the rules relating to the calculation and collection of income tax liabilities from consolidated groups and multiple entry consolidated groups (MEC groups) by:
- clarifying that the Commissioner of Taxation can recover unpaid PAYG liabilities under the liability for payment rules, with effect from 11 May 2010;
- clarifying that the liability for payment of tax rules applies to MEC groups, with effect from 11 May 2010;
- clarifying that an entity that pays its contribution amount under a tax sharing agreement can leave a consolidated group or MEC group clear from any further liability, with effect from the 2004-05 income year;
- ensuring that, where there is a change in the provisional head company of a MEC group during an income year, any PAYG instalments paid by the former provisional head company on behalf of the group are attributed to the group, with effect from 1 July 2002; and
- clarifying that relevant parts of the income tax law apply to MEC groups in the
same way as they apply to consolidated groups, with effect from 1 July 2002.
For more information, see the Assistant Treasurer's media release, No 2010/91, 11 May 2010.