102 paragraphs found in INT 1052
The tax consolidation legislation includes both mandatory requirements, which are applicable to all entities, and the tax consolidation system provisions, which entities can elect to adopt. The tax consolidation system allows groups comprising a parent …
The principal tax consolidation legislation was enacted through a series of Acts over a long period. The first Act, the New Business Tax System (Consolidation) Act (No. 1) 2002 , was passed by Parliament in June 2002. However, its commencement was …
Under the legislation, if a group chooses to be taxed as a consolidated entity, each of the entities in the tax-consolidated group will be taken to be “part” of the head entity for the purposes of the tax consolidation legislation. A single consolidated …
Accounting Standard AASB 112 Income Taxes contains the general requirements for accounting for income taxes. However, there are different views on many issues concerning the recognition of income tax amounts (expense/income, assets and liabilities) …
Concern has been expressed that, in the absence of authoritative guidance, diverse or unacceptable practices may occur or develop in accounting for the effects of the tax consolidation system. This will undermine the relevance and reliability of general …
The principal issues are: (a) Once tax consolidation is adopted: (i) should current taxes in relation to wholly-owned subsidiaries’ transactions be recognised by the subsidiaries and/or the head entity, or only by the group on consolidation? (ii) should …
The head entity and each subsidiary in a tax-consolidated group is required by AASB 112 to account for the current and future tax consequences of its assets and liabilities and transactions and other events of the current …
The consolidated current and deferred tax amounts for a tax-consolidated group shall be allocated among the entities in the group when they issue separate financial statements. This Interpretation does not require a single allocation method. However, the …
The following methods are examples of acceptable allocation methods: (a) a “stand-alone taxpayer” approach for each entity, as if it continued to be a taxable entity in its own right; (b) a “separate taxpayer within group” approach for each entity, on the …
The following group allocation methods, for example, are not acceptable: (a) a method that allocates only current tax liabilities to an entity in the group that has taxable temporary differences; (b) a method that allocates deferred taxes to an entity in …