Which of the following statements regarding intra-group transactions is incorrect?

Elimination of profits/losses from intra-group transactions will not have any tax effect because they are not recognized by the Australian Taxation Office.

Intra-group transactions are still economic transactions and thus will affect profits/losses of the parent and of the subsidiary.

Intra-group transactions are not recognized by the group as they do not involve an external party.

Elimination of profits/losses from intra-group transactions will not affect the amount of tax paid by the group.