Details

  • Service: Tax, Corporate Tax
  • Type: Business and industry issue
  • Date: 25/11/2011

Tax consolidation: RTFI and RTCS changes announced 

On 25 November 2011, the Government announced proposed changes to rights to future income (RTFI) and residual tax cost setting (RTCS) rules in the tax consolidation regime.

These proposed changes have significant retrospective and prospective implications for tax consolidated groups.

 

The media release and details of the Government’s response [PDF 166KB] are available on the Assistant Treasurer website (assistant.treasurer.gov.au).

The Board of Taxation Report from the Review into the RTFI and RTCS Rules is available on The Board of Taxation's website (www.taxboard.gov.au).

 

The Government also announced proposals [PDF 58KB] to the operation of the taxation of financial arrangements (TOFA) rules for consolidated groups to ensure that the TOFA Stages 3 & 4 provisions operate as intended and the tax treatment of financial arrangements that are liabilities is appropriate. The proposals also address technical issues raised by industry and ease the transition of consolidated groups into the regime.

 

To discuss this release, please contact your KPMG adviser or one of our tax consolidation contacts.

 

Tax consolidation contacts

To discuss the proposed changes to the tax consolidation regime, please contact one of the KPMG professionals listed.

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