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Learn more about the new ways consolidated group information can be managed and viewed

Changes to consolidated groups

With income tax moving to our new tax system, we have changed how consolidated group information is viewed and managed. The income tax account for a consolidated group is now viewed and managed under the nominated company.

Read below to find out more about this change, as well as how it might affect you or your clients.

For more information on these changes, check out our Structure of consolidated groups diagram (PDF | 41.2kb).

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Top questions


What is a consolidated group?

A consolidated group is group of companies owned by the same shareholders to be treated as a single economic entity for tax purposes. A consolidated group only files one non-individual income tax return, which includes the income of all the companies in the group. It also simplifies offsetting losses and transferring assets among the companies.

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What has changed?

We have changed how consolidated group information is viewed and managed. The income tax account for a consolidated group is now viewed and managed under the nominated company. That is, one company with its own IRD number that represents the consolidated group. The consolidated group will no longer appear under its own company.

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Why the change?

In our old system, a customer couldn’t have more than one income tax account. This meant that when companies consolidated into a group, a new entity with a separate IRD number had to be created. Creating this new entity meant that its income tax obligations could be managed separately from those of its members.

In our new system, a customer can have more than one income tax account. This means that a new entity doesn’t need to be created for a consolidated group’s income tax obligations to be managed.

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What does this change mean for existing and new consolidated groups?

When we moved income tax to the new system each existing consolidated group income tax account was moved under the nominated company’s IRD number.

Going forward, instead of creating a new entity, a new profile type is created to track imputation and consolidated groups. On the profile, an indicator will indicate what type of group this is for. Importantly, the consolidated group’s income tax account will sit under the nominated company’s IRD number. The nominated company’s own income tax account will be suspended. For each profile, links will be created from the nominated company to the group’s members by the Owner of the nominated company’s income tax account.

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What does this mean for...

myIR logons

  • As the income tax account for a consolidated group is now viewed and managed under the nominated company (with its own IRD number), web logons for other members of the group must be delegated access to the account. The account owner for the nominated company can delegate access in myIR. 

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Tax pooling transfers

  • Where tax pooling funds are going to be used to meet a consolidated group’s tax payment obligations, the transfer should be requested to the consolidated group’s income tax account IRD number.
  • As the group’s income tax account IRD number is part of the profile for the nominated company, the completed transfer request will be recorded under the nominated company’s IRD number. Although it’s recorded under the nominated company, the funds will appear in the consolidated group’s income tax account.

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Tax agent links

  • To link to members of a consolidated group you will need to link to that member’s IRD number.
  • To file or manage a consolidated group’s income tax, you will first need to link to the nominated company’s IRD number. This will then display all the available accounts, including the consolidated group’s income tax account.

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Payments

  • Where a payment is made to satisfy a consolidated group’s income tax obligations, the payment reference is the same – the consolidated group’s IRD number is used. The funds will be directed to the consolidated group’s income tax account.
  • This is the same for when a payment is made to satisfy the nominated company’s own income tax account.

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