Global

Details

  • Service: Tax, Mergers & Acquisitions, International Tax
  • Type: Regulatory update
  • Date: 8/5/2014

Australia - No tax deduction for consolidated group’s inherited liabilities 

August 5: The KPMG member firm in Australia has prepared the following reports.
  • When is a deductible liability not deductible? As proposed, retroactively effective from 14 May 2013, the tax consolidation law would be amended so that tax consolidated groups acquiring subsidiary members would be required to include, in their taxable income, amounts equivalent to deductible liabilities recorded by the subsidiary members at the joining time. The time at which the amounts are included in taxable income would depend on the nature of the liability. The net effect of the proposed changes would be that the acquiring consolidated group would get no net tax deduction for the inherited liabilities.

    Read a July 2014 report.


  • Fixed asset register “health check” – Effective management of capital projects in Australia—and the related trucks, tractors, crushers, conveyors, and all manner of other assets to be identified, classified, costed, and tracked for tax purposes—can help address and prevent significant tax issues. Also, periodic fixed asset register “health checks” can help uncover missed deductions that can be recouped by amending income tax returns.

    Read an August 2014 report.



©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now