Do Tax Groups need to prepare consolidated financial statements?

Do Tax Groups need to prepare consolidated financial statements?

Yes, to figure out the taxable income of the Tax Group, the parent company usually has to combine the financial accounts of all its subsidiaries for the relevant tax period. They need to remove any transactions between the parent company and its subsidiaries or between the subsidiaries themselves. But sometimes, they can’t remove these transactions, especially if one of the group members had losses before joining the group.

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