Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 3/14)
Character Range: 5048557–5051126

the transfer;
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.
 (3) If, apart from this subsection, section 320‑60 and subsection 320‑105(1), a *life insurance company could deduct an amount or apply a *capital loss as a result of the transfer of an asset to its *segregated exempt assets, 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 acquisition.
 (3A) Subsection (3) does not apply in relation to an amount that the company can deduct under a provision in Division 40.
 (4) A *life insurance company cannot deduct an amount or apply a *capital loss as a result of the transfer of an asset from its *segregated exempt assets.
 (6) If a *depreciating asset is transferred to the *segregated exempt assets of a *life insurance company, then, in determining for the purposes of Division 40 whether an amount is included in, or can be deducted from, the company's assessable income as a result of the transfer, the company is taken:
 (a) to have, at the time immediately before the transfer, sold the asset for a consideration equal to its *market value at that time; and
 (b) to have, at the time of the transfer, purchased the asset again for a consideration equal to its market value at that time.
 (7) If a *depreciating asset that has been included in the *segregated exempt assets of a *life insurance company since the asset was acquired by the company or the initial segregation of those assets took place is transferred from those assets, then the company must assume for the purposes of Division 40 that:
 (a) if the asset's *market value at the time of the transfer is greater than its *adjustable value at that time, the company:
 (i) had, at the time immediately before the transfer, sold the asset for a consideration equal to its adjustable value at that time; and
 (ii) had, at the time of the transfer, purchased the asset again for a consideration equal to its adjustable value at that time; or
 (b) if the asset's market value at the time of the transfer is equal to or less than its adjustable value at that time, the company:
 (i) had, at the time immediately before the transfer, sold the asset for a consideration equal to its market