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-L - Life insurance companies  

Tax cost setting rules for life insurance companies joining consolidated group

SECTION 713-520   Valuing certain liabilities where life insurance company joins group  

713-520(1)  
Despite section 705-70 , if the joining entity mentioned in step 2 in the table in section 705-60 is a * life insurance company, the joining entity ' s liabilities mentioned in this section are to be valued as mentioned in this section.

713-520(2)  


The value of the joining entity ' s * complying superannuation liabilities (if any) is the amount worked out under section 320-190 at the joining time.

713-520(3)  
The value of the joining entity ' s * exempt life insurance policy liabilities (if any) is the amount worked out under section 320-245 at the joining time.

713-520(4)  
Subsection (5) applies to a liability of the joining entity if:


(a) the liability is under the * net risk component of a * life insurance policy; and


(b) the joining entity could deduct under section 320-80 an amount for the * risk component of claims paid under the policy had it not become a * member of the * consolidated group.

713-520(5)  
The value of that liability is the * current termination value of the * net risk component of the * life insurance policy at the joining time (calculated by an * actuary).

713-520(6)  


The value of the joining entity ' s liabilities under the * net investment component of ordinary life insurance policies is the amount worked out for those liabilities under subsection 320-190(2) as if those liabilities were * complying superannuation liabilities.

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