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    Taxation Advantages and Disadvantages - Consolidated Group

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    What advantages are there from filing as a consolidated group? What disadvantages?

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    * Advantages
    One of the major advantages of consolidated taxation is the opportunity to offset positive taxable income against negative taxable bases of group companies. The group is entitled to include only the tax losses of the year for which it exercised the consolidated taxation option in the consolidation. Any tax losses accrued in years prior to the group taxation may be used only by the companies that suffered such losses.

    If tax losses of controlled companies are included in the ...

    Solution Summary

    Advantages and disadvantages from filing as a consolidated group are explained.