Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-90
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CONSOLIDATED GROUPS
Division 713
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Rules for particular kinds of entities
Subdivision 713-M
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General insurance companies
Liabilities and reserves of general insurance companies joining and leaving consolidated groups
SECTION 713-710 713-710 Treatment of liabilities and reserves for income year when general insurance company joins or leaves group
Sections 713-715 and 713-720 affect how sections 321-10 , 321-15 , 321-50 and 321-55 (the affected sections ) apply in relation to these values (the affected values ):
(a) the value of the outstanding claims liability of a * general insurance company under * general insurance policies that is worked out under section 321-20 ;
(b) the value of the unearned premium reserve of a general insurance company under general insurance policies that is worked out under section 321-60 .(a) section
321-10
includes an amount in the company
'
s assessable income for the current year if the value at the end of the current year is less than the value at the end of the previous income year; and
(b) section
321-15
allows a deduction for the current year if the value at the end of the current year is more than the value at the end of the previous income year.
(a) section
321-50
includes an amount in the company
'
s assessable income for the current year if the value at the end of the current year is less than the value at the end of the previous income year; and
(b) section
321-55
allows a deduction for the current year if the value at the end of the current year is more than the value at the end of the previous income year.
View history note
Hide history noteSECTION 713-710 713-710 Treatment of liabilities and reserves for income year when general insurance company joins or leaves group
Sections 713-715 and 713-720 affect how sections 321-10 , 321-15 , 321-50 and 321-55 (the affected sections ) apply in relation to these values (the affected values ):
(a) the value of the outstanding claims liability of a * general insurance company under * general insurance policies that is worked out under section 321-20 ;
(b) the value of the unearned premium reserve of a general insurance company under general insurance policies that is worked out under section 321-60 .
Note 1:
Sections 321-10 and 321-15 both operate on the basis of a comparison of the value of the outstanding claims liability of a general insurance company at the end of the current year with the value of that liability at the end of the previous income year, so that:
Note 2:
Sections 321-50 and 321-55 both operate on the basis of a comparison of the value of the unearned premium reserve of a general insurance company at the end of the current year with the value of that reserve at the end of the previous income year, so that:
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