Tax Grouping
/ˈtæks ˈɡruːpɪŋ/
Definitions
- (n.) A tax arrangement permitting multiple related companies to be treated as a single entity for tax purposes, allowing income and losses to be consolidated.
The company applied for tax grouping to offset profits and losses across its subsidiaries.
- (n.) The concept under which a group of companies or entities can file a combined tax return or be assessed collectively for tax liabilities.
Tax grouping simplifies the compliance requirements for corporate groups.
Forms
- tax grouping
Related terms
See also
Commentary
Tax grouping is often governed by specific statutory provisions defining eligibility and effects; drafters should clarify the scope of entities included.
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.