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Consolidated Tax Return

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Consolidated tax return
A tax return combining the reports of affiliated companies, that are at least 80% owned by a parent company.

Consolidated Tax Return
A tax return providing information on the assets, liabilities, profits, and losses of a group of affiliated companies. Each company's tax return is reconciled so that the return is treated as if it were for a single company. A parent company may file a consolidated tax return if it owns at least 80% of its subsidiaries.


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The taxpayer in the ruling is engaged in the business of generating electricity and filed consolidated tax returns, which took into account the income and losses of all related entities, including those treated as partnerships or disregarded entities.
Thus, a reporting entity that files a consolidated tax return including the VIE is required to consolidate the VIE in its financial statements.
In giving the award, TEI President Ray Rossi acknowledged that as clients, practitioners, and students of taxation, "TEI members have benefited enormously from Kevin's knowledge, insights, and counsel; moreover, the tax system itself, and several generations of practitioners, have benefited from his dedication and professionalism in teaching and explaining the intricacies of the consolidated tax return regime.
 
 
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