(1) A consolidated subsidiary corporation which ceases to be consolidated and controlled by a consolidated parent corporation or is dissolved shall not apply the consolidated tax return system from the start date of the consolidated business year in which the relevant cause occurs; provided, where a consolidated subsidiary corporation is dissolved upon being merged by absorption into another consolidated corporation, it may apply the consolidated tax return system for the business year in which the registration date of the dissolution falls. <Amended on Dec. 31, 2011; Dec. 31, 2022>
(2) Where the application of the consolidated tax return system ceases to be applied under the main clause of paragraph (1) during the period between the consolidated business year for which the application of the consolidated tax return system was approved and the consolidated business year that ends within four years from the start date of the following consolidated business year, the amount of income or loss shall be included in gross income or deductible expenses for the business year in which the relevant cause occurs as follows; provided, the foregoing shall not apply in extenuating circumstances specified by Presidential Decree: <Amended on Dec. 15, 2015>
1. The amount of income of a corporation excluded from consolidation (referring to an individual corporation that ceases to apply the consolidated tax return system under the main clause of paragraph (1); the same shall apply hereafter in this Article), which has been aggregated with the losses of other consolidated corporations under Article 76-14 (1) during consolidated business years: To be included in gross income of the corporation excluded from consolidation;
2. The amount of losses of a corporation excluded from consolidation, which has been aggregated with the income of other consolidated corporations under Article 76-14 (1) during consolidated business years: To be included in deductible expenses of the corporation excluded from consolidation;
3. The amount of income of a corporation, which has been aggregated with the losses of a corporation excluded from consolidation under Article 76-14 (1) during consolidated business years: To be included in gross income of the relevant corporation;
4. The amount of losses of a corporation, which has been aggregated with the income of a corporation excluded from consolidation under Article 76-14 (1) during consolidated business years: To be included in deductible expenses of the relevant corporation.
(3) Articles 76-9 (3) through (6) shall apply mutatis mutandis where the consolidated tax return system is not applied under the main clause of paragraph (1). <Added on Dec. 15, 2015>
(4) Where a consolidated subsidiary corporation is changed pursuant to paragraph (1), it shall file a report thereon with the commissioner of the competent regional tax office having jurisdiction over the place for tax payment, as prescribed by Presidential Decree, within one month from the date on which the grounds for such change occur. <Added on Dec. 31, 2011; Dec. 15, 2015; Dec. 31, 2023>[This Article Wholly Amended on Dec. 30, 2010]