Entity Classes for Tax Consolidation
The following sets out whether entities may or may not be members of a consolidated group either as a head company or subsidiary member.
The following codes are available for selection when completing the Eligibility Tests Worksheets
Class Code | Description of Entity | Excl. as Head Y/N | Excl. as subsidiary Y/N | Reason |
|---|---|---|---|---|
A | An entity that is exempt from income tax under division 50 of the ITAA 1997 | Yes | Yes | Total ordinary and statutory income is exempt from tax. |
B | A recognised medium credit union (defined by section 6H of the ITAA 1936) | Yes | Yes | Have a threshold placed on the tax payable on their taxable income |
C | An Approved credit union (defined under section 23G of the ITAA 1936) that is not a recognised medium or large credit union | Yes | Yes | Entitled to an exemption under section 23G of the ITAA 1936 for interest received from non-corporate members |
D | A Pooled development fund (PDF) (defined under section 995-1 of the ITAA 1997) | Yes | Yes | Subject to a concessional rate of tax, that is, not subject to the general rate of company tax |
E | A Film Licensed Investment Company (FLIC) (defined under section 375-855 of the ITAA 1997) | Yes | Yes | Tax losses and capital losses cannot be transferred and deductions for expenditure on a film where the amount spent is FLIC capital cannot be claimed |
N | A Non-Profit Company (defined under section 3 of Income Tax Rates Act 1986 | Not excluded | Yes | Subject to a rate of tax other than the general company tax rate. Non-profit companies can however be a head company |
N/A | A trust that is a:
| Not Applicable | Yes | The corporate tax rate is 'phased in' on the taxable income of these entities |