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FM 35: Forming consolidated group
or “How to create a group of companies for tax purposes”
You could also call this:

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

If you have two or more companies that have already formed a group called a consolidated group, and this group still exists, here’s what you need to know:

If your company meets the requirements in section FM 31, you can choose to join this consolidated group. To do this, you need to tell the Commissioner about it.

When you tell the Commissioner that you want to join the group, you also need to agree to something important. You need to agree that you will be responsible, along with the other companies in the group, for paying the income tax that the consolidated group owes. This is called being “jointly and severally liable” and it’s explained in section FM 3(5).

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Next up: FM 37: Leaving consolidated group

or “How a company can leave a consolidated group”
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Part F Recharacterisation of certain transactions
Consolidated groups of companies: Forming, joining, or leaving consolidated groups

FM 36Joining existing consolidated group

  1. This section applies when 2 or more companies have formed a consolidated group and the consolidated group has not ended its existence.

  2. If a company is eligible under section FM 31, it may choose to join the consolidated group by notifying the Commissioner.

  3. The company providing the notification referred to in subsection (2) must agree in the notice to be jointly and severally liable under section FM 3(5) for income tax payable by the consolidated group.

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Notes
  • Section FM 36(2): amended, on (with effect on 1 April 2008), by section 102 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).