The Australian government today proposed fixes to its tax consolidation rules to alter unintended tax outcomes. The government is seeking feedback on the new draft.
The unintended outcomes arise under the tax cost setting rules when an entity leaves or joins a tax consolidated group, said the Hon Kelly O’Dwyer MP, Australia’s Minister for Revenue and Financial Services. The government had announced its intention to make these changes in its 2013–14, 2014–15 and 2016–17 budgets.
Australia’s tax consolidation rules allow multinational groups to chose to form a consolidated group for tax purposes and be treated as one entity.
Feedback on the draft changes is requested by October 6.