Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-35 - INSURANCE BUSINESS  

Division 320 - Life insurance companies  

Subdivision 320-H - Segregation of assets to discharge exempt life insurance policy liabilities  

Operative provisions

SECTION 320-235   Consequences of a valuation under section 320-230  

Transfer from the segregated exempt assets

320-235(1)  
If:


(a) the total *transfer value of the company ' s *segregated exempt assets as at a *valuation time;

exceeds


(b) the amount of the company ' s *exempt life insurance policy liabilities as at that time;

the company must transfer, from the segregated exempt assets, assets of any kind having a total transfer value equal to the excess.

320-235(2)  
A transfer under subsection (1) must be made within the period of 30 days starting immediately after:


(a) the day on which the total *transfer value and the *exempt life insurance policy liabilities (as at the *valuation time) were calculated; or


(b) if those amounts were calculated on different days - the later of those days.

The transfer, once made, is taken to have been made at the valuation time (whether or not the transfer is made within those 30 days).

Note:

A life insurance company that fails to comply with subsections (1) and (2) is liable to an administrative penalty: see section 288-70 in Schedule 1 to the Taxation Administration Act 1953 .

Transfer to the segregated exempt assets

320-235(3)  
If:


(a) the total *transfer value of the company ' s *segregated exempt assets as at a *valuation time;

is less than


(b) the amount of the company ' s *exempt life insurance policy liabilities as at that time;

the company can transfer, to the segregated exempt assets, assets of any kind having a total transfer value not exceeding the difference.

320-235(4)  
A transfer under subsection (3) is taken to have been made at the *valuation time if it is made within the period of 30 days starting immediately after:


(a) the day on which the total *transfer value and the *exempt life insurance policy liabilities (as at the valuation time) were calculated; or


(b) if those amounts were calculated on different days - the later of those days.


 

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