Generally dividends paid and received between entities within a group do not require tax-effect adjustments upon consolidation.

Question

Quizplus · Accepted Answer

Dividends paid and received between entities within a group are eliminated upon consolidation and do not require tax-effect adjustments. This is because dividends are an intra-group transaction and do not involve any external party, hence there is no tax impact on the group as a whole.

Generally Dividends Paid and Received Between Entities Within a Group