Can you restructure businesses within a Tax Group without tax consequences?
Yes, you can do business mergers and some other restructuring without causing a taxable gain or loss.
- If there are two companies in a Tax Group, and one of them gives all its business to the other company, the Tax Group will stop existing on the day that the transfer happens. You can learn more about what happens when a Tax Group ends in question 296.
- But if there are more than two companies in the Tax Group, and one of them gives all its business to another company, the one doing the transfer is still considered part of the Tax Group until the transfer is done. After the transfer is complete, the Tax Group keeps existing.
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