Miscellaneous 2022

Unknown unknowns with unconsolidated clients

Source: The Tax Specialist Journal Article

Published Date: 1 Apr 2022

 

The consolidation provisions represent a combination of legal, accounting and economic concepts that are enacted in both prescriptive detail and broad principle. This presents difficulties for all taxpayers, but especially groups in the small-to-medium enterprise (SME) markets. Entry into consolidation is difficult for groups that utilise hybrid company/trust structures, or those that have an insufficiency of those attributes that enable entry into consolidation without detriment. These kinds of groups and entities dominate the SME sector. While a number of amendments have made the process of consolidating easier, this has caused detriment to the integrity of the consolidation framework. There have been informed recommendations for reforms that would better facilitate consolidation for the SME sector, but no action has been taken. This article considers the reasons consolidation can be difficult for an SME and what can be done under the existing law to mitigate the problems of consolidation for an SME group.

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now

Already a Subscriber? Login now

Details

The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))

("TTI")

The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.

Tags

Miscellaneous 2022

Share this page