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Who must complete the Consolidated groups losses schedule 2012?
A head company of a consolidated group or multiple entry consolidated (MEC) group must complete the schedule and lodge it with the Company tax return 2012 (NAT 0656), if any of the following apply:
- The total of the group's tax losses and net capital losses carried forward to later income years is greater than $100,000.
- The total of its tax losses and net capital losses transferred from joining entities is greater than $100,000.
- The total of its utilised tax losses and net capital losses is greater than $100,000.
- It has an interest in a controlled foreign company (CFC) that has current year losses greater than $100,000.
- It has an interest in a CFC that has deducted or carried forward a loss to later income years greater than $100,000.
- It is a life insurance company and has a total of complying superannuation/first home savers account (FHSA) class tax losses and complying superannuation/FHSA net capital losses carried forward to later income years greater than $100,000.
The examples provided in these instructions are for illustration purposes only and may use lower figures, for simplicity.
A head company may need to complete the schedule for certain aspects of its net capital losses. While some of the information requested in the schedule is also requested in the Capital gains tax (CGT) schedule 2012 (NAT 3423) (CGT schedule), a head company that completes a consolidated groups losses schedule may also need to complete a CGT schedule.
If the head company completes the schedule for any aspect of its losses, it must complete all relevant parts of the schedule - for example, if a head company completes the schedule as a result of having tax losses and net capital losses carried forward to later income years greater than $100,000, it must also provide details of controlled foreign company (CFC) losses, even if the total of these losses is less than $100,000.
These instructions are based on provisions relating to consolidated groups. Some of those provisions are modified in Division 719 of the Income Tax Assessment Act 1997 (ITAA 1997) in relation to MEC groups.
Last modified: 30 May 2012QC 25834