Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 4/14)
Character Range: 5050910–5053417

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 value at that time; and
 (ii) had, at the time of the transfer, purchased the asset again for a consideration equal to its market value at that time.
 (8) If a *depreciating asset that was previously transferred to the *segregated exempt assets of a *life insurance company 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 its transfer from those assets is greater than its market value at the time when it was transferred to those assets, the company:
 (i) had, at the time immediately before the transfer from those assets, sold the asset for a consideration equal to its market value at the time when it was transferred to those assets; and
 (ii) had, at the time of the transfer from those assets, purchased the asset again for a consideration equal to its market value at the time when it was transferred to those assets; or
 (b) if the asset's market value at the time of its transfer from those assets is equal to or less than its market value at the time when it was transferred to those assets, the company:
 (i) had, at the time immediately before the transfer from those assets, sold the asset for a consideration equal to its market value at that time; and
 (ii) had, at the time of the transfer from those assets, purchased the asset again for a consideration equal to its market value at that time.
 (9) Division 40 has effect in relation to an asset covered by subsection (6), (7) or (8) as if:
 (a) in relation to the sale of the asset that is taken to have occurred under that subsection:
 (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 subsection; 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 that subsection:
 (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 subsection; and
 (iii) the company had acquired the asset from an *associate of the company.
Note: This means that, amongst other things, as