What criteria must government entities follow when forming a tax group?

In addition to the general criteria, which are applicable to everyone, government entities must also comply with the following to form a tax group:

• A designated government entity is to be a part of tax groups with other designated government entities only.

• A designated government entity cannot be a part of tax groups with a non-designated government entity.

• A government entity that is not designated can be a part of tax groups with other legal entities for which the usual tax group rules apply.

A designated government entity is one that has been designated by the Cabinet and is required to register for VAT.