Fed: 12 month extention for elections on tax: Brough

AAP General News (Australia)
12-20-2004
Fed: 12 month extention for elections on tax: Brough

CANBERRA, Dec 20 AAP - The time for making or revoking "tax elections" which affected
the taxable income of businesses would be extended, Assistant Treasurer Mal Brough said
today.

Mr Brough said consolidated groups lodging their consolidated tax returns will now
have until December 31, 2005, to make or revoke tax elections that affect their taxable
income.

"There have been significant legislative changes introduced recently through the Taxation
Laws Amendment Bills, and the government recognises the need to provide businesses with
sufficient time to operate under the benefits of these changes before making these important
decisions," he said in a statement.

Mr Brough said the extension followed discussion with business groups.

He said the changes would cover the election to retain existing tax cost for assets
or reset their tax cost, the election to utilise certain losses over three years or the
election to cancel a loss on the transfer of a loss.

But the election to form a consolidated or multiple entry consolidated group will remain
irrevocable.

AAP sw/it/sd

KEYWORD: TAX

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