Consolidating and reprting dating portugal love of
There are typically complex rules to deal with the acquisition of companies with tax losses or other tax attributes.Both the United States and Australia have rules which restrict the use of such losses in the wider group.
A similar consolidated return regime applies in Spain.
The aim of a tax consolidation regime is to reduce administrative costs for government revenue departments and reduce compliance costs for corporate taxpayers.
For companies, consolidating can help understate profits by having losses in one group company reduce profits for another.
Thereafter, all corporations that begin to meet the 80% vote and value test must join in the consolidated return.
If a subsidiary ceases to meet the 80% vote and value test, it is removed from the group.