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  

Losses of life insurance companies' subsidiaries joining consolidated group

SECTION 713-535   Losses of entities whose membership interests are complying superannuation assets of life insurance company  

713-535(1)  
This section applies if:


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


(b) at the joining time, the life insurance company owns, either directly or indirectly through one or more interposed entities, all the * membership interests in yet another entity (the life insurance subsidiary ) that becomes a * subsidiary member of the group at that time; and


(c) all the following membership interests are * complying superannuation assets of the life insurance company:


(i) the membership interests (if any) that the life insurance company owns directly in the life insurance subsidiary;

(ii) the membership interests (if any) that the life insurance company owns directly in the interposed entities; and


(d) the * head company of the group makes a * tax loss or * net capital loss under Subdivision 707-A because of a transfer from the life insurance subsidiary.

713-535(2)  
This Act operates for the purposes of income years ending after the transfer as if:


(a) the * tax loss were of the * complying superannuation class; or


(b) the * net capital loss were from * complying superannuation assets.

713-535(3)  
Subdivisions 707-B , 707-C and 707-D do not affect the * utilisation of the loss by the * head company of the * consolidated group.


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