INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 170 - Treatment of company groups for income tax purposes  

Subdivision 170-D - Transfer of life insurance business  

SECTION 170-300   170-300   Transfer of life insurance business  


If:


(a) all or part of the life insurance business of a life insurance company (the originating company ) is transferred to another life insurance company (the recipient company ):


(i) in accordance with a scheme confirmed by the Federal Court of Australia under Part 9 of the Life Insurance Act 1995 ; or

(ii) under the Financial Sector (Transfers of Business) Act 1999 ; and


(b) the originating company makes a capital loss from a CGT asset as a result of the transfer; and


(c) that capital loss is disregarded because of Subdivision 126-B of this Act;

Subdivision 170-C of the Income Tax Assessment Act 1997 has effect as if:


(d) that capital loss were a net capital loss transferred by the originating company to the recipient company by an agreement under section 170-150 of that Act; and


(e) the application year referred to in section 170-225 of that Act were the year in which the transfer of life insurance business took place.




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