The regime of tax consolidation is known to be allowing the wholly owned group company for consolidating the purposes of tax. Entering the consolidation of tax had not been compulsory for the organization as they can continuously be filing individual returns over income tax, even though there is an availability of a restricted relief is the organization will be choosing to stay outside the regime for consolidation of tax. The application of rules may be done for the wholly owned subsidiary of the organization (Deegan 2010). This means that the subsidiary will be making an entry by a number of different points. It is important to note that the rules do not seem to be allowing a branch office for being a part of the group consolidated by tax. The organization being a part of the consolidated group is known to be treated equally for the purposes of income tax and will be lodging one return on income tax that is known to be covering each and every member in the group (Austin and Ramsay 2011). Transactions amongst the organizations that are known to be part of the same group of consolidation are under effective ignorance for the purposes of income tax. This effectively permits the losses of the groups to be offsetting against the assessable amount of income for the other company involved in the group. Hence, this makes the disclosure of consolidation practice more clear.
The way in which there is management of work of compliance, the organization is known to be undergoing certain number of changes, but those having expectation for less work of compliance in the future should be rethinking. Work of compliance will still be under existence and the specialization has been emerging on its own. The organization has been specializing further ahead into the areas of compliance. Further ahead, compliance will be considered as the base from which the organization can be branching into different areas (Deegan 2010). The organization has been addressing the need for thinking beyond accounting based on compliance and tax. The objective seems to be focused on the achievement of good performance with the key priority being growth for the group of shareholders.