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 leaving consolidated group

SECTION 713-575   Terminating value of certain assets where life insurance company leaves group  

713-575(1)    
This section applies if a ^* life insurance company (the leaving entity ) ceases to be a ^* subsidiary member of a ^* consolidated group at a time (the leaving time ).

713-575(2)    

For the purposes of applying section 711-25 in relation to the leaving entity, the ^* head company ' s terminating value for an asset that it holds at the leaving time because the leaving entity is taken by subsection 701-1(1) to be a part of the head company is the ^* transfer value of the asset at the leaving time, if the asset is:

(a) a ^* complying superannuation asset, or a ^* segregated exempt asset, of the head company; or

(b) held by the head company for the purpose of discharging its liabilities under the ^* net investment component of ordinary life insurance policies (except policies that provide for ^* participating benefits or ^* discretionary benefits under ^* life insurance business carried on in Australia).