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CONSOLIDATIONS AFTER THE DATE OF ACQUISITION



            Intragroup Transactions Not Subject To Tax



            • If an intragroup transaction contains no unrealised


                profit element (or unrealised loss element), and it does


                not affect the taxable income (or assessed loss) of the


                companies concerned, the transaction will not have any

                tax implications.



            • If a parent grants an interest-bearing loan to its


                subsidiary, the interest expense of the subsidiary will

                contra against the interest income of the parent in the


                consolidated statement of comprehensive income.



            • Thus the net effect of the interest transaction is zero;


                and it will have no effect on the taxable income or

                assessed loss of the group.


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