Government announces major tax changes to consolidation rules
Deloitte Federal Budget media releaseDOWNLOAD
Wednesday 15 May 2013: The Government yesterday announced support for several further technical changes to the tax consolidation regime which are aimed at improving the integrity of the consolidation regime and are largely based on the recommendations made by the Board of Taxation in its post-implementation reviews into the consolidation regime.
Some of the key Board of Taxation recommendations supported by the Government include:
Disappointingly, the Government has decided to consider further (rather than support) the recommendations made by the Board of Taxation to simplify the consolidation rules to assist small to medium sized business groups in overcoming the complexity and high compliance costs they face in entering the consolidation regime.
“These proposals add to the significant back-log of unenacted and/or unresolved tax consolidation measures,” said Aldrin De Zilva, a tax partner at Deloitte. “Consolidated groups are feeling somewhat fatigued by the quantum of changes in respect of tax consolidation and are unlikely to be impressed with again having to spend considerable amounts of time, effort and expense to comply with the further proposed changes in the consolidation provisions.”
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