The never-held-by-a-non-member requirement could be considered inappropriate if a debt were always held as intercompany debt in a predecessor group and came into the current
group under an exception that prevented triggering of all deferred gain or loss.
Court Defers Loss Deduction on Redemption of Intercompany Debt
The parties in Alumax both assumed that this special transition rule was applicable, so that the only issue was whether Alumax could be treated as part of the Amax consolidated group under the 80-percent voting power test.(7)
The Tax Court rejected this argument, too, concluding that there were significant distinctions between the rights held by the Mitsui Group under the director objectionable action provision and the rights held by the holders of contingent rights in the authorities on which the taxpayers relied.
Does Alumax bar "bankruptcy-proofing" and special voting rights?
Indemnification clauses may require a group to reimburse a supplier for any loss the supplier suffers through a third party because of the actions of the
group under the agreement.
Analyzing vendor and supplier contracts
Finally, the need to allocate federal income tax to each subsidiary in the consolidated
group under the mandated complementary method, and to compare the allocation with the charge or credit for financial reporting purposes, will add to the burden of this recordkeeping requirement.
Responding to the new subsidiary investment and earnings and profits consolidated return regulations
One item affecting the calculation of E&P is the allocation of Federal income tax among members of a consolidated
group under Sec.
New elections available in wake of final consolidated return regulations
The alternative agents include (i) the common parent for all or part of the year to which the notice or waiver applies; (ii) the successor to the former common parent in a seciton 381 (a) transaction; (iii) the agent designated by the affiliated
group under Treas.
Consolidated returns: post-tax reform developments