Income Tax Assessment Act 1997

Part 3-90 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

Div 713 inserted by No 117 of 2002, s 3 and Sch 5 item 6, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

Subdiv 713-L inserted by No 16 of 2003, s 3 and Sch 6 item 1, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

S 713-560 repealed by No 56 of 2010, s 3 and Sch 5 item 196, applicable on and after 1 July 2002. S 713-560 formerly read:

SECTION 713-560 If valuation of segregated exempt assets is delayed  
Application

713-560(1)
This section applies if there is a period (the gap ) between:

(a) the fusion time; and

(b) the determination time or the time at which the policyholder ceases to be a ^* member of the ^* consolidated group, whichever is earlier;

when the fused entities are both members of the consolidated group.

Continuation of exempt life insurance policy during the gap

713-560(2)
For the head company core purposes mentioned in section 701-1 (Single entity rule), Division 320 applies in relation to the fused entities ' policy as if it continued to be an ^* exempt life insurance policy during the gap, even though both the fused entities were ^* members of the ^* consolidated group.

Transfer from segregated assets to provide for annuity payments

713-560(3)
During the gap, the ^* head company of the ^* consolidated group may transfer an asset from the head company ' s ^* segregated exempt assets to provide for payments of the ^* immediate annuity under the fused entities ' policy.

Effect of transfer

713-560(4)
If the ^* head company of the ^* consolidated group transfers an asset under subsection (3):

(a) section 320-255 applies to the asset in the same way as that section applies to an asset transferred under subsection 320-250(2); and

(b) whichever one of subsections (5) and (6) is relevant affects the ^* head company of the ^* consolidated group for the income year in which the gap occurs.

Income if policy is not a qualifying security

713-560(5)
If the fused entities ' policy is not a qualifying security (as defined in section 159GP of the Income Tax Assessment Act 1936 ), the ^* head company ' s assessable income includes the amount that, if the fused entities had not been ^* members of the ^* consolidated group:

(a) would have been included in the policyholder ' s assessable income under section 27H of that Act in connection with the policy; and

(b) would have been *derived in the gap.

Income or deduction if policy is a qualifying security

713-560(6)
If the fused entities ' policy is a qualifying security (as defined in section 159GP of the Income Tax Assessment Act 1936 ):

(a) the ^* head company ' s assessable income includes the amount (if any) that, if the fused entities had not been ^* members of the ^* consolidated group:

(i) would have been included in the policyholder ' s assessable income under section 159GQ of that Act in connection with the policy; and

(ii) would have been attributable to the gap; or

(b) the head company may deduct the amount (if any) that, if the fused entities had not been members of the consolidated group:

(i) would have been a deduction allowable to the policyholder under section 159GQ of that Act in connection with the policy; and

(ii) would have been attributable to the gap.

S 713-525 to s 713-585 substituted for s 713-525 and s 713-530 by No 41 of 2005.