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FM 34: Nominated companies
or “How a company is chosen to represent a group of companies for tax purposes”
You could also call this:

“How to create a group of companies for tax purposes”

You can form a group of companies called a consolidated group if you meet certain conditions. To do this, you need at least two companies that are completely owned by the same group. These companies also need to be eligible according to section FM 31.

If you want to form a consolidated group, you must tell the Commissioner. In your notice, you need to say that each company in the group agrees to be responsible together for paying the income tax assessed for the whole group. This is called joint and several liability.

When you tell the Commissioner about forming your group, you need to choose one company to be in charge. This company is called the nominated company. You must tell the Commissioner which company you have chosen to be the nominated company.

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Next up: FM 36: Joining existing consolidated group

or “How to join an existing group of companies for tax purposes”
Next

Part F Recharacterisation of certain transactions
Consolidated groups of companies: Forming, joining, or leaving consolidated groups

FM 35Forming consolidated group

  1. Two or more companies may choose to form a consolidated group of companies if the companies are, at the time,—

  2. a wholly-owned group of companies; and
    1. eligible under section FM 31.

      1. The Commissioner must be notified of an election under subsection (1). For the purposes of section FM 3(5), the notice must state that each company that is part of the consolidated group acknowledges their joint and several liability for the amount of income tax assessed for the consolidated group.

      2. A notice under subsection (2) must nominate 1 of the companies in the consolidated group as its agent. The company is called the nominated company.

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