Create a Consolidated Tax Group

Overview

A Consolidated Tax Group (group) is a separate entity with its own IRD number and manages tax losses, tax credits, and the imputation credit account for the group. When you create a group in TaxLab and add members, the system will automatically combine the tax calculations of all group members and display the overall tax position and tax notes reports for each tax year in the group entity.

Create a Consolidated Tax Group

Step 1 - Create the group entity

1. From the TaxLab home screen, select Create Entity.
2. Select the relevant Country and in Entity type select Consolidated Tax Group.
3. In Entity name, enter the group's legal name which is the name to be used in the tax return.
4. Enter the entity’s IRD number.
5. Select Confirm.

Step 2 – Add members to the group

Note: Member entities must be created before they can be added to a group. Please see our article Add entities to your organisation for instructions.

1. From the TaxLab home screen, select the name of the group.
2. Select the Members tab.
3. Set the Date group formed.
4. Select Add entity to group.
5. In the Entity field, start typing the name of one of the group members, then select the entity from the list that displays. 
   • If the group member does not display in the list, it means the entity has not yet been created, you do not have access to the entity, or a subscription has not been added to the entity.
6. Select the Date joined (the first day of the tax year that the entity will be in the group).
7. Optional: select the Date left (the last day of the tax year that the entity will be in the group).
8. Select Add entity to group.
9. Repeat the above steps until you have added all of the member entities to the group.

The Import button is not available to add members to a Consolidated Tax Group, and should only be used when adding members to a Consolidated Financial Statements Group.

Remove a Member from a Group

There are two scenarios where you might want to remove a member from a group:

• Scenario 1:  For your own reason, for example, if you added a member to the wrong group. In this case, you can remove the member completely and no record of it will remain in the group. The calculation in the underlying member will not be deleted.
• Scenario 2: If the entity has left the group after being part of the group for some time, you will want to record this but leave the calculations correct for the time it was a member of the group.

To remove a member:

1. From the TaxLab home screen, select the name of the group.
2. Select the Members tab.
3. Select the name of the member you want to remove.
4. To remove the member completely (scenario 1 above), select Remove from group.
5. To remove the member and retain the calculations (scenario 2 above), select the Date left field, and set the end of the tax year as the date the entity left the group.
6. Select Save.

How the group calculation works

Tax calculations need to be prepared in each member entity. These calculations will flow up to the group entity. Once all member calculations have been prepared, the group position can be reviewed.

Tax losses, tax credits and imputation credit account details for the group entity need to be completed at a group level. To access these workpapers from within the group entity, select the Workpapers tab.

Troubleshooting

Unable to add entity to group

When trying to add a member entity to a group if the name of the entity you want to add isn't displaying in the dropdown this may be because:

• The entity has not yet been created: see Add entities to your organisation.
• You do not have access to the entity: from the TaxLab home screen, select the name of the entity you require access to, select the Users tab, contact one of the users listed to get access.
• A subscription has not been added to the entity: see Add or remove a subscription.

Related Articles

• Import trial balances for a Group from Microsoft Excel.