Why did the practice of consolidated reporting arise in the
United States earlier than in France?
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Why did the practice of consolidated reporting arise in theUnited States earlier than in France?
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Tax consolidation or combined reporting is a regime adopted in the tax or revenue legislation of a number of countries which treats a group of wholly owned or majorityowned companies and other entities such as trusts and partnerships as a single entity for tax purposes This generally means that the head entity of the group is responsible for all or most of the groups tax obligations such as paying tax and lodging tax returns Consolidation is usually an allornothing event once the decision to consolidate has been made companies are irrevocably bound Only by having less than a 100 interest in a subsidiary can that subsidiary be left out of the consolidation The aim of a tax consolidation regime is to reduce administrative costs for government revenue departments and reduce compliance costs for corporate taxpayers For companies consolidating can help understate profits by
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