Tax Consolidation
/ˈtæks kənˌsɒlɪˈdeɪʃən/
Definitions
- (n.) A tax mechanism allowing a group of related entities to be treated as one taxpayer for income tax purposes.
The company used tax consolidation to file a single return for all its subsidiaries.
Forms
- tax consolidation
- tax consolidations
Related terms
See also
Commentary
Tax consolidation is primarily used in corporate tax law to simplify administration and enable offsetting of profits and losses within a group.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.