Consolidation minutes, February 2009

2. Update on action items discussed at 12 June 2008 meeting

Action item	1/28Jun07 (Tax Sharing Agreements and the clear exit provisions)
Description	The revised ATO Receivables Policy was published in PS LA 2008/13 on 28 August 2008.
Responsibility	John Evans
Due date	Finalised

Action item	2/28Jun07 (Intra-group assets and the exit history rule - NTLG sub-group issue 17.10)
Description	The Chair provided an update on this item. Members were asked to forward any additional intra-group asset and single entity rule issues for consideration. Current Tax Office thoughts in relation to the single entity rule will be presented by Deputy Chief Tax Counsel at the upcoming TIA Consolidation Symposiums.
Responsibility	John Evans
Due date	Next meeting

Action item	Agenda item 5/28Jun07 (Subdivision 705-C for non-consolidated groups - NTLG Consolidation Sub-group issue 17.08)
Description	Lindsay Hanham provided an update on this item. This Ruling topic was withdrawn from the Public Rulings program, subsequent to the 12 June 2008 meeting. It will be considered as a part of ongoing discussions with the Treasury. Examples received 23 February 2009. These will be examined by the Tax Office and discussed at the next Sub-group meeting.
Responsibility	Lindsay Hanham
Due date	Next meeting

Action item	5/28Jun07 (Trusts joining and leaving a consolidated group during an income year)
Description	Karin Collinson provided an update on this item. While a legislative modification for 2007-08 onwards has been announced, an appropriate administrative solution for the prior period is under discussion. Draft Consolidation Reference Manual material and other administrative approaches are being considered in light of a wider Tax Office review of issues involving trusts.
Responsibility	Karin Collinson
Due date	Next meeting

Action item	Agenda item 13/28Jun07 (Straddle contracts - NTLG Consolidation Sub-group issue 14.01a)
Description	Final Taxation Determinations (TD 2008/29, TD 2008/30 and TD 2008/31) issued on 17 December 2008
Responsibility	John Evans
Due date	Finalised

Action item	4/12Jun08 (Foreign hybrids)
Description	Lindsay Hanham provided an update on this item. Members of the Sub-group requested that a formal Tax Office view be provided as to whether a foreign hybrid could be a member of a consolidated group, given the view provided in Taxation Determination TD 2008/24 about the assessability of dividends paid by a non-resident company to a partnership. Members were invited to prioritise the issue via the Issues Registers such that appropriate Tax Office resources could be allocated.
Responsibility	Lindsay Hanham
Due date	Next meeting

Action item	6/12Jun08 (The implications for consolidation of the view expressed in Draft Taxation Ruling TR 2007/D10 - NTLG Consolidation Sub-group issue 17.21)
Description	Update provided by the Chair. Taxation Ruling 2007/D10 remains in draft form. It would be premature to pre-empt the final form of the TR and the implications of that Ruling on the consolidation cost setting process.
Responsibility	John Evans
Due date	Next meeting

Action item	7/12Jun08 (The treatment of convertible notes on entry and exit - NTLG Consolidation Sub-group issue 17.17)
Description	Lindsay Hanham provided an update on this item. It was noted the Tax Office has some concerns with non-share equity instruments and how they are treated in the tax cost setting process. These have been referred to Treasury. This is an issue where it is anticipated there may be a need to consult with external members before a solution might be arrived at.
Responsibility	Lindsay Hanham
Due date	Next meeting

To close, members discussed refreshing the Issues Registers for the Sub-group. It was stated that the Registers had been dormant with the focus shifting to the announced but un-enacted consolidation law amendments.

Action item	1/26Feb09 - re-examine Practitioner's Priority Issues Registers
Description	Sub-group members committed to discussing the status of issues on their Registers with a view to refreshing and re-prioritising these. Also consider whether the Tax Issues Entry System (TIES) register can assist in prioritising those issues requiring a technical law amendment.
Responsibility	Sub-group members
Due date	Next meeting

Sections within Agenda items

• 1. Introduction
• 2. Update on action items discussed at 12 June 2008 meeting
• 3. Multiple Entry Consolidated Groups - current issues - input requested
• 4. Deferred Tax Liabilities (DTLs)- Deferred Taxes in the ACA and the Tax Cost Setting Process
• 5. SER and foreign branches
• 6. McIntosh Decision - update
• 7. Discussion of Members' views as to priority issues for Feb 2009 - June 2009
• 8. Next meeting / other business