Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-35 - INSURANCE BUSINESS  

Division 320 - Life insurance companies  

Subdivision 320-F - Complying superannuation asset pool  

Operative provisions

SECTION 320-200   Consequences of transfer of assets to or from complying superannuation asset pool  

320-200(1)    

This section applies if:

(a) an asset (other than money) is transferred from a *complying superannuation asset pool under subsection 320-180(1) or 320-195(2) or (3); or

(b) an asset (other than money) is transferred to a complying superannuation asset pool under subsection 320-180(3) or section 320-185 .

320-200(2)    
In determining:

(a) for the purposes of this Act (other than Parts 3-1 and 3-3) whether an amount is included in, or can be deducted from, the assessable income of a *life insurance company in respect of the transfer of the asset; or

(b) for the purposes of Parts 3-1 and 3-3:

(i) whether the company made a *capital gain in respect of the transfer of the asset; or

(ii) whether the company made a *capital loss in respect of the transfer of the asset;

the company is taken:

(c) to have sold, immediately before the transfer, the asset transferred for a consideration equal to its *market value; and

(d) to have purchased the asset again at the time of the transfer for a consideration equal to its market value.

320-200(2A)    

Without limiting subsection (2), where the asset transferred is a *depreciating asset, Division 40 has effect for the company as if:

(a) in relation to the sale of the asset that is taken to have occurred under paragraph (2)(c):

(i) the sale were a *balancing adjustment event; and

(ii) the *termination value of the asset for that event were equal to the consideration for the sale under that paragraph; and

(iii) the company had stopped *holding the asset at the time of the sale; and

(b) in relation to the purchase of the asset that is taken to have occurred under paragraph (2)(d):

(i) the company had only begun to hold the asset after the purchase; and

(ii) the first element of the asset ' s *cost were equal to the consideration for the purchase under that paragraph; and

(iii) the company had acquired the asset from an *associate of the company.

Note:

This means that, amongst other things, as a result of the transfer:

• the asset ' s cost for the purposes of working out a deduction under Division 40 is reset; and

• the company ' s assessable income might be adjusted under section 40-285 .

320-200(3)    

If, apart from this subsection and section 320-55 , a *life insurance company could deduct an amount or make a *capital loss as a result of a transfer of an asset to or from its *complying superannuation asset pool, the deduction or capital loss is disregarded until:

(a) the asset ceases to exist; or

(b) the asset, or a greater than 50% interest in it, is *acquired by an entity other than an entity that is an *associate of the company immediately after the transfer.

320-200(4)    

Subsection (3) does not apply in relation to an amount that the company can deduct under a provision in Division 40 .