• Group Taxation

In the context of the current capital gains tax provisions, transfers of assets, mergers, demergers and reorganisations between "group" members do not trigger a capital gains tax charge.  There is also an exemption under the duty on documents provisions on an exchange of shares between group companies. 

The new regime extends the group concept to allow a company to surrender, tax losses which may be set off against the tax profits of another company in the same group for the corresponding year of assessment. 

The "surrendering" company and the "claimant" company must have corresponding accounting periods to benefit under the new group tax provisions. 

A claim for group relief need not be for the full amount available and requires the consent of the surrendering company.  A claim must be made to the Commissioner before the end of the year of assessment for which the claim is made. 

A company that has claimed losses from a group company may carry the losses forward and utilize them for set-off against its future profits.  Losses carried forward from previous years cannot be surrendered. 

Losses can only be surrendered to the corresponding account of the claimant company (eg. foreign income account losses can only be surrendered and utilised against the future profits of the claimant company).