We recommend that you check your client`s circumstances. If the client is fiscally consolidated and there is no tax participation or financing agreement, please call a member of our team to discuss your client`s needs. If they join the tax consolidation system, business groups need to think about how best to minimize the application of joint and several liability related to group income taxes. They must also consider the extent to which subsidiaries finance the payment of these debts by the main company. Both issues can be managed by business groups through tax-sharing agreements and tax financing agreements. 1 Act 74 of 2010. 2 Since the beginning of the income tax consolidation scheme in 2002, members of a consolidated income tax group or consolidated group (CME) (consolidated groups) (all consolidated groups) can enter into an ASD and, if valid, provisions that jointly account for each member of the group or joint venture for the various group income tax liabilities apply. , no application. 3 This is currently planned in paragraph 444-90, paragraph 1 of Schedule 1 of the TAA, which was provided for in Section 53 of the TAA by July 1, 2006. 4 paragraph 7.1.40 of the report and recommendation 32. 5 Published by the Assistant Treasurer and Minister of Competition Policy and Consumer Protection. 6 Tax financing agreements are concluded, among other things, to ensure that groups can meet the accounting treatment of consolidated commitments under Interpretation 1052 of the Emergency Group, an interpretation of the accounting standard AASB 112 (income tax).

7 This does not include interest not collected solely for income tax, mineral oil tax and contribution tax. 8 Subsectors 16-A (for GST groups) and 16-B (for GST Joint Ventures) of the A New Tax System (Luxury Car Tax) Act 1999 and Sub-Division 21-B (for GST groups) and sub-division 21-C (for GST Joint-Ventures) of the A New Tax System (Wine Equalisation Tax) Act 1999 and Section 70-5 of the Fuel Tax Act 2006. 9, subsection 444-90 (2) of Schedule 1 of the TAA. 10 For GST joint ventures, clause 444-80 (1A) to (1E) of Schedule 1 of the TAA is provided. 11, paragraph 164, of the claims policy. 12 Paragraph 188 of the debt policy. 13, subsection 444-90 (1B) of Schedule 1 of the TAA. 14, subsection 444-90 (1C) of Schedule 1 of the TAA. 15 July 24, 2008 version. 16, paragraph 74, of the claims policy.