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  • Advice under development – consolidation issues

    We are developing advice and guidance on the following consolidation issues.

    [3796] Consolidation – tax offsets

    Title
    Draft Taxation Determination
    How does the head company of a consolidated group (or MEC group) satisfy the requirements of section 65-40 of the Income Tax Assessment Act 1997 when it seeks to apply a carried forward tax offset:

    • that remained unused by an entity at the time it joins the head company’s consolidated group, or
    • that remained unused by an entity, including the head company, where the consolidated group was formed.

    Registered
    27 May 2016

    Purpose
    The draft Determination will replace ATO ID 2015/6 and provide proposed advice more generally on how a joining entity's non-refundable carried forward tax offsets may be accessed and utilised by the head company of the joined consolidated group.

    Expected completion
    Under review – to be advised

    Contact
    PAGPGH@ato.gov.au

    [3919] Retirement villages – exit ACA calculation

    Title
    Final Practical Compliance Guideline
    Retirement villages: ATO compliance approach to the exit allocable cost amount calculation at step 4 for certain resident liabilities under lease premium or loan/lease occupancy agreements.

    Registered
    May 2018

    Purpose
    The final Guideline will provide practical guidance on the treatment of certain liabilities arising under loan/lease or lease premium arrangements on exit of a subsidiary member (that owns or develops a retirement village) of a consolidated group for the purposes of section 711-45 of the Income Tax Assessment Act 1997.

    Expected completion
    To be advised

    Comments
    Draft PCG 2019/D1 published on 5 April 2019. Comments close on 3 May 2019.

    Contact
    Michael Pini, Tax Counsel Network
    Phone: (07) 3213 5609
    Michael.Pini@ato.gov.au

    [3920] Consolidation churning measure

    Title
    Final Law Companion Ruling
    Consolidation: churning of joining entities by foreign-owned groups

    Registered
    November 2017

    Purpose
    The final Ruling will provide advice on the application of section 716-440 of the Income Tax Assessment Act 1997 which addresses the interaction between the non-resident capital gains tax rules and the consolidation regime in respect of certain group restructures.

    Expected completion
    April 2019

    Comments
    Draft LCR 2018/D3 published on 9 May 2018.

    Contact
    Angela Zhang, Tax Counsel Network
    Phone: (02) 9374 2452
    FeedbackLCR2018D3@ato.gov.au

    Last modified: 08 Apr 2019QC 57884