Document ID: chunk:federal_register_of_legislation:C2010C00584:clause:6_21:p1
Version: federal_register_of_legislation:C2010C00584
Segment Type: clause
Provision Reference: sch 6 cl 21 (pt 1/2)
Character Range: 67966–70801

21  Section 713‑510
Repeal the section, substitute:

713‑510  Certain subsidiaries of life insurance companies cannot be members of consolidated group

 (1) An entity cannot be a *subsidiary member of a *consolidated group or *consolidatable group of which a *life insurance company is a *member if:
 (a) the life insurance company owns, either directly or indirectly through one or more interposed entities, all the *membership interests in the entity and either:
 (i) some, but not all, of the membership interests described in subsection (3) (the key interests) are *virtual PST assets of the life insurance company; or
 (ii) some, but not all, of the key interests are *segregated exempt assets of the life insurance company; or
 (b) the life insurance company owns, either directly or indirectly through one or more interposed entities, only some of the membership interests in the entity and any of the key interests are virtual PST assets or segregated exempt assets of the life insurance company.

Note: The entity could, however, be a member of another consolidated group or consolidatable group.

 (2) An entity cannot continue to be a *subsidiary member of a *consolidated group of which a *life insurance company is a *member if:
 (a) the life insurance company owns, either directly or indirectly through one or more interposed entities, all the *membership interests in the entity and, had the entity not been a subsidiary member of the group, either:
 (i) some, but not all, of the membership interests described in subsection (3) (the key interests) would be *virtual PST assets of the life insurance company; or
 (ii) some, but not all, of the key interests would be *segregated exempt assets of the life insurance company; or
 (b) the life insurance company owns, either directly or indirectly through one or more interposed entities, only some of the membership interests in the entity and, had the entity not been a subsidiary member of the group, any of the key interests would be virtual PST assets or segregated exempt assets of the life insurance company.

 (3) The key interests are the *membership interests the *life insurance company owns directly in:
 (a) the entity; or
 (b) an interposed entity.

Life insurance companies' liabilities on joining consolidated group

713‑511  Treatment of certain liabilities for income year when life insurance company joins consolidated group

 (1) This section affects how paragraph 320‑15(1)(h) and section 320‑85 apply if:
 (a) a *life insurance company becomes a *subsidiary member of a *consolidated group at a time (the joining time); and
 (b) just before the joining time, the life insurance company had one or more liabilities under the *net risk components of life insurance policies.

Note: Paragraph 320‑15(1)(h) and section 320‑85 both operate on the basis