Tax Losses Consolidator

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Technology ... making tax easy}

Losses Consolidator

Introduction
General features
Comprehensive coverage
Planning features
Order form and brochure

Software to calculate and manage consolidated tax losses

Tax Losses Consolidator is a program designed to save considerable time and risk for anyone working with losses in a consolidated group. A financial controller may use it for planning purposes; a tax manager for compliance purposes and auditors for risk assessments.

The program handles the complex calculations associated with current and prior year losses. This includes the actual income tax calculations as well as multiple notional income tax calculations for each loss bundle. Comprehensive records of the myriad detail are maintained by the program for multiple years.

The power and flexibility of the program help users determine the optimal loss utilisation strategy since the hard task of calculating the outcome of each option is handled by the program. Our custom solutions may assist in automating the optimisation process.

The traditional loss rules are covered, as well as the new loss choice rules and the specialised ongoing and transitional rules applicable to consolidated groups.

Most users will be productively managing their tax losses within minutes of loading the CD. No special training is necessary for anyone familiar with Microsoft^® Excel. The program includes a plain English guide to tax losses. Hyper-links to the relevant law and explanatory memoranda are included in the program.

General features

Unlimited groups (subject to licence and computer capacity
50 entities/loss bundles in the standard version (subject to licence and computer capacity)
Covers all 7 loss sorts (including CGT, film and foreign)
Handles all 9 income categories (including exempt, CGT, film and foreign)
Covers 7 years of calculations (2003 to 2009 inclusive in standard version, subject to licence)
Loss history recorded from 1990
Calculations for ATO consolidated groups losses schedule including printed schedules approved for lodgment
The program may be tailored to suit specific requirements.
Comprehensive coverage (see below)

Comprehensive coverage

New rules

§ Choice in relation to utilising losses brought forward, including caps

§ Losses due to excess franking offset

Traditional rules

§ Exempt income

§ Film losses

§ Section 26-55 (deductions that cannot create or increase a loss)

§ Debt forgiveness

§ Transfers

§ Order of utilising losses brought forward (exempt, film and aging)

§ Section 79D (foreign deductions)

§ Section 79DA (choice of applying domestic losses against foreign income)

§ The ATO loss schedule requirements to report donated losses by the donor’s TFN is also accommodated

§ CGT L1 losses which drip-feed over 5 years

Consolidation non-transitional

§ Notional group income calculations for standard losses

§ Notional taxable income calculations for domestic bundles

§ Notional taxable income calculations for foreign bundles

§ Detailed available fraction calculations including apportionment’s and a history archive for all 5 adjustment types

§ Loss cancellations

§ Tracking 4 types of standard losses (including all of their loss sorts)

Consolidation transitional

§ Automatic calculation of the concessional option including capping rules

§ Tracking transitional losses, including their loss sorts

§ Loss value donations are calculated and recorded

§ Loss donations are calculated and managed (eg utilisation is tracked to assist management of CF loss test failure)

Planning features

The program highlights losses potentially available for the concessional 1/3^rd pa treatment and can apply that treatment automatically by a simple user choice.
The user may also choose the order in which losses are utilised by loss bundle and within each loss sort (eg a revenue loss in Bundle A can be prioritised over a revenue loss in Bundle B whilst a CGT loss in Bundle B can be prioritised over a CGT loss in Bundle A). The user simply sets the order and the program does all the calculations and sorting. This applies both for concessional losses and standard losses.
The user may choose the amount of brought forward losses utilised (subject to the legal limits which are also calculated by the program)
Loss donations are managed with utilisations shown for donor and donee and user choice allowed for ordering utilisation amongst multiple donors.
Within each bundle, the user is able to choose the order of utilisation amongst the four categories of standard losses for each loss sort.
The user is able to prioritise standard loss utilisation before group losses in the circumstances permitted.
The user is able to choose debt forgiveness offsets by loss sort within each bundle and also for the group.
The categorisation of the 5 loss types within each bundle is handled automatically for each of the 7 loss sorts.
Considerable user overrides are permitted to facilitate planning.

The Tax Losses Consolidator™ program in the Tax Consolidator suite streamlines the tax consolidation planning and compliance requirements relating to tax losses. The module does not require any other program in the Tax Consolidator suite to be installed. The program is available now.

Key benefits

Faster and easier tax consolidation planning and compliance
Reduced risks of errors (detailed coverage of legal requirements and documentation for tax audits)
Effective means of tax consolidations training
Built-in tax research tool with relevant law and EM's
Improve staff morale (reduce stress and drudgery)
Use to fast-track system changes (or as a system add-on) and due diligence assignments

Features common to all programs in the Tax Consolidator suite include:

Context sensitive tax technical help, including guidance in plain-English
Unlimited number of entities and groups (subject to licence and computer capacity)
Automatic consolidations include user adjustments and overrides
Access restrictions for group and/or company by username and password
Designed to be used with minimal (if any) user training

Order form and brochure

Please complete and mail the TLC Order Form to receive a licence to use this program. Included in the licence entitlements is a 30-day money back guarantee if you are not completely satisfied. The order form is located on the back of the brochure.