Tax consolidation changes

Published on 01 Aug 15 by "THE TAX SPECIALIST" JOURNAL ARTICLE

The tax consolidation regime has recently undergone substantial amendment, and there are more amendments to come. This article considers the recent round of amendments, namely, changes relating to the tax cost of rights to future income and the residual tax cost-setting rule, and the interaction of the taxation of financial arrangement rules with tax consolidation. The article also discusses forthcoming changes embodied in the recommendations of the Board of Taxation contained in the Restoring Integrity to the Consolidation Regime exposure draft legislation released by Treasury on 28 April 2015. The authors conclude that, following the recent amendments, there are several issues on which different interpretations are open to taxpayers and the ATO alike.The impending introduction of further legislative changes will also keep all in the industry busy, as will the on going reviews into a number of recommendations of the Board of Taxation, and the MEC group rules.

Author profiles

Daniel Sydes ATI

Daniel is a Director at Greenwoods & Herbert Smith Freehills Pty Limited, with over 15 years of tax adviser experience. Daniel advises on a wide range of corporate tax issues, particularly within the property construction and development, property funds management, and media sectors. One of Daniel's key areas of expertise is the MIT, AMIT and clean building MIT regimes, and the various issues that arise in property development transactions. - Current at 22 November 2017

More by Daniel SYDES

• Inbound real estate investment – How to avoid getting burnt paper - 14-November-2017
• Tax consolidation: An update paper - 16-May-2013
• Tax consolidation: Rights to future income and residual tax cost-setting rules - The prequel, the main feature, and the sequel paper - 17-May-2012
• Tax consequences of disposing of intellectual property - 01-April-2012
• Tax consequences of disposing of intellectual property paper - 21-February-2012
• Tax consequences of disposing of intellectual property paper - 12-October-2010
• Tax Case: Our mutual friend gives clubs and cooperatives a dickens of a hiding - 01-April-2004
• Tax Case: P & G Rocca Pty Ltd v Commissioner of Taxation (2002) FCA 732 - 01-August-2002

Click here to expand/collapse more articles by Daniel SYDES.

Andrew Hirst CTA

Andrew is a Partner and Head of Financial Services at Greenwoods & Herbert Smith Freehills. Andrew advises on a range of corporate and banking-related tax issues with a particular focus on financial and international transactions. Andrew has worked with Treasury and the ATO on various areas of tax reform that impact the financial services industry. - Current at 16 November 2021

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• Tax consolidation: An update paper - 16-May-2013
• Taxation of financial arrangements paper - 13-March-2013
• Foreign hybrids - Where are we now? paper - 14-September-2011
• Tax Case: State tax affects CGT again? - 01-December-2005
• Tax Case : A PE or not a PE? - 01-October-2004

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