This article outlines the mechanics of calculating a Tax Group's Taxable Income. The Parent Company must prepare consolidated financial statements, eliminating all transactions between group members. Specific rules apply to tax losses: pre-grouping losses of a joining subsidiary can only be used against income attributable to that same subsidiary (loss streaming). Likewise, existing group losses cannot offset income from a new subsidiary. If an asset is transferred within the group and a member leaves within two years, the initial tax-neutral treatment is reversed, and the gain or loss is recognised.