Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p15
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 15/30)
Character Range: 6182276–6184891

group at a time (the joining time); and
 (b) that company has demutualised under Division 9AA of Part III of the Income Tax Assessment Act 1936; and
 (c) in the period starting just after the company demutualises and ending at the joining time, all of the *membership interests in the company were owned by the same group.
 (2) A goodwill asset of the company just before the joining time is a retained cost base asset.
 (3) The goodwill asset's *tax cost setting amount is its amount (worked out in accordance with subsection 121AN(2) of the Income Tax Assessment Act 1936) on the applicable accounting day (see subsection 121AN(4) of that Act).

Liabilities and reserves of general insurance companies joining and leaving consolidated groups

713‑710  Treatment of liabilities and reserves for income year when general insurance company joins or leaves group
  Sections 713‑715 and 713‑720 affect how sections 321‑10, 321‑15, 321‑50 and 321‑55 (the affected sections) apply in relation to these values (the affected values):
 (a) the value of a *general insurance company's adjusted *liability for incurred claims under *general insurance policies that is worked out under section 321‑20;
 (b) the value of a general insurance company's adjusted *liability for remaining coverage under general insurance policies that is worked out under section 321‑60.
Note 1: Sections 321‑10 and 321‑15 both operate on the basis of a comparison of the value of a general insurance company's adjusted liability for incurred claims at the end of the current year with the value of that liability at the end of the previous income year, so that:
(a) section 321‑10 includes an amount in the company's assessable income for the current year if the value at the end of the current year is less than the value at the end of the previous income year; and
(b) section 321‑15 allows a deduction for the current year if the value at the end of the current year is more than the value at the end of the previous income year.
Note 2: Sections 321‑50 and 321‑55 both operate on the basis of a comparison of the value of a general insurance company's adjusted liability for remaining coverage at the end of the current year with the value of that reserve at the end of the previous income year, so that:
(a) section 321‑50 includes an amount in the company's assessable income for the current year if the value at the end of the current year is less than the value at the end of the previous income year; and
(b) section 321‑55 allows a deduction for the current year if the value at the end of the current year is more than the value at the