The formation of, and changes to a tax consolidated group can be quite complex. We can assist and provide both company groups and tax agents with access to the expertise necessary to allow appropriate tax management of such groups. This includes the following areas:
Formation
Forming a group requires calculation of the impacts on the tax cost bases for all subsidiary members, testing whether losses are transferred such that they become available to the group, determining the impact upon franking accounts and whether group formation gives rise to a franking deficit liability.
There can also be a number of CGT events which can arise – knowing what they are and their impact before the decision to consolidate is made is fundamental to knowing whether to proceed.
We can undertake these calculations for you and provide you with outcomes which can be readily understood an implemented.
Maintenance
Over the life of a consolidated group entities might join and leave, consolidated groups might join, and losses might be made and recouped. We can assist in ensuring that a consolidated group properly manages its tax affairs.
Exiting
As entities or assets leave the group, the earlier changes are likely to change the tax outcome from what the financial statement might suggest is to arise. We can undertake the necessary work so that the disposal is correctly treated in the group’s accounts.
