Generally, the head company of a consolidated or multiple entry consolidated (MEC) group must keep records that document:

• the choice in writing to form a consolidated group or MEC group
• the process of forming the group
• entries and exits of subsidiary members into and out of the group
• events which result in an entity being no longer eligible to be a head company or provisional head company (PHC)
• consolidation eliminations or adjustments to get the income tax outcome for the head company of the group.

This is in addition to those records usually kept to support the income tax liability of the head company.