What happens if a parent company or subsidiary transfers its entire business to another group member and ceases to exist?

Tax Group
1

What happens if a parent company or subsidiary transfers its entire business to another group member and ceases to exist?

2

  • The company will remain a member of the tax group until it ceases to exist.

  • If a subsidiary ceases to exist, any pre-Grouping Tax Losses will be foregone.

  • If a parent company ceases to exist, the tax group’s losses will remain with the group, provided the group continues to exist.

  • If the tax group itself ceases to exist due to such a transfer, any tax group losses will be foregone.