What is tax consolidation act?

The Taxation Administration Act or a Tax Consolidation Act (depending on the country) generally refers to laws that govern how companies manage and report taxes as a group.


In Australia, for example, the Tax Consolidation Regime is part of the Income Tax Assessment Act 1997 and allows a group of entities (usually a head company and its subsidiaries) to be treated as a single entity for income tax purposes.
 
The Tax Consolidation Act allows related companies within a group to be treated as a single entity for tax purposes, simplifying reporting and enabling loss offsets within the group.
 
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