Income Tax Assessment Act 1997
SECTION 713-725 Treatment of certain assets and liabilities of general insurance companies 713-725(1)
This section applies if a *general insurance company becomes or ceases to be a *subsidiary member of a *consolidated group.
713-725(2)
If the *general insurance company becomes a *subsidiary member of the group:
(a) in working out the step 2 amount for the purposes of the table in section 705-60 , reduce that amount by the sum of the amount of each thing mentioned in subsection (4); and
(b) in working out the *tax cost setting amount of a thing mentioned in subsection (4) for the purposes of section 705-35 , treat the *market value of the thing as zero.
713-725(3)
If the *general insurance company ceases to be a *subsidiary member of the group:
(a) in working out the step 4 amount for the purposes of the table in section 711-20 , reduce that amount by the sum of the amount of each thing mentioned in subsection (4); and
(b) for the purposes of section 711-25 , treat the *terminating value of a thing mentioned in subsection (4) as zero.
713-725(4)
The things are the *general insurance company's:
(a) deferred acquisition costs in relation to the company's unearned premium reserve; and
(b) deferred reinsurance expenses in relation to the company's unearned premium reserve; and
(c) recoveries receivable in relation to the company's *outstanding claims.
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