Become a Member
Membership
Education
Events
Resources
Tax Knowledge Exchange
About us
Contact us
  Miscellaneous 2007

'The con' - broken bits in the income tax consolidation rules

Source: Western Australia

Published Date: 11 Aug 2007

 

Sorry, this is subscriber only content.

If you're not yet a subscriber, to gain access to this material and much more - Subscribe Now.

Already a Subscriber? Login now

Subscribe Now

Already a Subscriber? Login now

Various aspects of the income tax consolidation rules in Part 3-90 of the Income Tax Assessment Act 1997 (Cth) still do not work properly. This paper focusses on a number of these aspects, including:

  • the operation of the company loss recoupment rules as loss transfer tests
  • the modifications to the 'same business test' for income tax consolidated groups
  • peculiar outcomes under the 'single entity rule'
  • the private ruling system and restructures of consolidated groups
  • weaknesses in the Tax Sharing Agreement and 'clear exit payment' rules
  • anomalies in relation to CGT event L5 and the acquisition of a consolidated group
  • the exclusion from CGT event J1 in relation to entities that leave:
    • income tax consolidated groups
    • multiple entry consolidated (MEC) groups
These aspects also provide a context within which the paper will consider a selection of recent legislative amendments and ATO rulings.
Author(s)

Individual Session

'The con' - broken bits in the income tax consolidation rules

Author(s): Duncan R C Baxter
Materials from this session:

Download

Details

  • Published By: Duncan R C Baxter
  • Published On:11 Aug 2007
  • Took place at:Abbey Beach Resort, Busselton

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 2007

Share this page