Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 713 - Rules for particular kinds of entities  

Subdivision 713-M - General insurance companies  

Tax cost setting rules for general insurance companies joining consolidated group

SECTION 713-705   Certain assets taken to be retained cost base assets where general insurance company joins group  

713-705(1)    
This section applies if:

(a) a ^* general insurance company becomes a ^* subsidiary member of a ^* consolidated group at a time (the joining time ); and

(b) that company has demutualised under Division 9AA of Part III of the Income Tax Assessment Act 1936 ; and

(c) in the period starting just after the company demutualises and ending at the joining time, all of the ^* membership interests in the company were owned by the same group.

713-705(2)    
A goodwill asset of the company just before the joining time is a retained cost base asset .

713-705(3)    
The goodwill asset ' s ^* tax cost setting amount is its amount (worked out in accordance with subsection 121AN(2) of the Income Tax Assessment Act 1936 ) on the applicable accounting day (see subsection 121AN(4) of that Act).