Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 16/30)
Character Range: 6184695–6187340

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 end of the previous income year.

713‑715  If general insurance company joins consolidated group
 (1) This section applies if a *general insurance company becomes a *subsidiary member of a *consolidated group at a time (the joining time).
 (2) The object of this section is to ensure that the *head company of the *consolidated group bears the income tax consequences relating to changes after the joining time in the affected values.
Note: The general insurance company bears the income tax consequences relating to a change in the affected values before the joining time, because section 701‑30 ensures that the affected sections apply in relation to a part of the income year before that time when the company was not a subsidiary member of a consolidated group as if that part were an income year.
 (3) The affected sections apply for the head company core purposes set out in section 701‑1 (Single entity rule) as if each of the affected values at the end of the last income year ending before the joining time were the amount that would have been that value had that income year ended just before the joining time.

713‑720  If general insurance company leaves consolidated group
 (1) This section applies if a *general insurance company ceases to be a *subsidiary member of a *consolidated group at a time (the leaving time) in an income year (the leaving year).
 (2) The object of this section is to ensure that:
 (a) the *head company of the *consolidated group bears the income tax consequences relating to changes before the leaving time in the affected values; and
 (b) the *general insurance company bears the income tax consequences relating to changes after the leaving time in the affected values.

Head company's income or deduction
 (3) For the head company core purposes set out in section 701‑1 (Single entity rule) relating to the leaving year (but not later income years), the affected sections have effect as if each of the affected values at the end of the leaving year for the *head company of the *consolidated group were increased by the relevant value for the *general insurance company at the end of the previous income year worked out under subsection (5).

General insurance company's income or deduction
 (4) For the entity core purposes set out in section 701‑1 (Single entity rule) relating to the *general insurance company and the leaving year, the affected sections have effect as if each of the affected values