INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-32 - CO-OPERATIVES AND MUTUAL ENTITIES  

Division 316 - Demutualisation of friendly society health or life insurers  

Subdivision 316-B - Capital gains and losses connected with the demutualisation  

Gains and losses of members, insured entities and successors

SECTION 316-65   Valuation factor for sections 316-60, 316-105 and 316-165  

316-65(1)  


For the purposes of section 316-60 , 316-105 and 316-165 , the valuation factor is the amount worked out using the formula:


Market value of the friendly society ' s health insurance business (if any) + Embedded value of the friendly society ' s other business (if any)
Total * capital proceeds for all entities from * CGT events happening under the demutualisation to interests affected by demutualisation (except those described in subparagraph 316-55(1)(b)(iv))

where:

embedded value of the friendly society ' s other business (if any)
means the amount that would be the value of the *friendly society worked out under section 316-70 assuming that neither the friendly society, nor any health/life insurance subsidiary of it, carried on any health insurance business within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015 .

market value of the friendly society ' s health insurance business (if any)
means the total *market value of every health insurance business, within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015 , carried on by either or both of the *friendly society and its health/life insurance subsidiaries (if any), taking account of any consideration paid to the society or subsidiary for disposal or control of that business.

316-65(2)  
Disregard paragraph 316-60(2)(a) for the purposes of the formula in subsection (1) of this section.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.