Tax Laws Amendment (2004 Measures No. 6) Act 2005 (23 of 2005)

Schedule 12   Transfer of life insurance business

Income Tax Assessment Act 1997

1   After section 138-20


138-25 Transfers of life insurance business

For the purposes of applying this Division, if the trigger event happens because 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 ):

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

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

an amount equal to the *market value of any liabilities assumed by the recipient company in respect of the transfer is taken to be money received by the originating company in respect of the transfer (except to the extent that the amount is otherwise taken into account as *capital proceeds in respect of the transfer).