Notification of formation of a Multiple Entry Consolidated (MEC) group
A multiple entry consolidated (MEC) group is formed when all of the eligible tier-1 companies of a potential MEC group make a written choice to form a MEC group from a particular date; that is, the date of consolidation. The head company of the MEC group must also notify us about the formation of the group using the appropriate form.
How to notify us
Either the head company or its registered tax agent can notify us about the group's formation using one of the following methods:
Alternatively, the tax agent can notify the formation when lodging the head company's income tax return via ELS.
Do not use this form for consolidated groups.
This formation notification is not sufficient to meet the requirement to make a choice in writing to form a MEC group.
Notifying us is not the same as making written choice to form a MEC group. The requirement to make a written choice is in addition to the requirement to notify us of the formation.
End of danger
The head company must notify us about the group's formation by one of the following dates:
- the date it lodges its income tax return for the income year in which the chosen date of consolidation occurs
- if a return is not required, by the date it would otherwise be due.
We recommend the head company submits the notification two or three weeks before lodging their income tax return. This will allow us to update our records for the group and ensure the return is processed correctly.
Remember, once the choice to consolidate is made, that choice cannot be revoked and the date of consolidation cannot be changed.
End of attention