Document ID: chunk:federal_register_of_legislation:C2025C00029:section:1:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 1 (pt 4/19)
Character Range: 6290642–6293186

before the leaving time:
 (i) as if the entity had made an election under that section, if the *head company of the *consolidated group made, or was treated as having made, such an election that was relevant to working out that company's liability (if any) for income tax, or that company's *tax loss (if any), for an income year in connection with the contract; or
 (ii) as if the entity had not made such an election, if the head company had not made, and was not treated as having made, such an election that was relevant to working out that company's liability (if any) for income tax, or that company's tax loss (if any), for an income year in connection with the contract.
Note: In some cases, subsection 715‑665(4) treats the head company of a consolidated group as having made an election under section 148 of the Income Tax Assessment Act 1936 in relation to reinsurance under contracts made before an entity becomes a member of the group.

Fresh choice by the entity
 (5) The entity may make a choice (however described) under the choice provision if the question whether the entity has made such a choice is relevant to working out the entity's liability (if any) for income tax, or loss (if any) of a particular *sort, calculated by reference to an income year ending after the leaving time.

Extension of time for fresh choice by the entity
 (6) If there is a time limit (apart from this subsection) on the entity making such a choice, the entity has until the later of these times to make the choice:
 (a) the last time it may make the choice under the choice provision (apart from this section);
 (b) the end of 90 days after the leaving time or, if the Commissioner allows a later time for the purposes of this paragraph, that later time.

Start of effect of choice
 (7) If the entity makes a choice because of this section, the choice starts to have effect:
 (a) at the leaving time; or
 (b) if the choice relates (explicitly or implicitly) to one or more whole income years—for the income year in which the leaving time occurs.
 (8) However, if:
 (a) the entity makes a choice because of this section; and
 (b) the choice is an election under section 148 of the Income Tax Assessment Act 1936 (Reinsurance with non‑residents);
the election has effect only for the purposes of that section applying in relation to reinsurance under contracts made at or after the leaving time and in an income year for which the election applies under that section.
Note: Subsection (4) explains how section 148 of the Income Tax Assessment Act