Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:24_3
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 24 cl 3
Character Range: 303283–304444

3  At the end of section 45‑330 in Schedule 1
Add:

Special rule for a life insurance company that is, or has been, the head company of a consolidated group

 (4) A company's adjusted taxable income for the *base year is worked out under subsection (3) with the modification set out in subsection (5) if the company:
 (a) is a *life insurance company for the base year; and
 (b) has *tax losses transferred to it under Subdivision 707‑A of the Income Tax Assessment Act 1997.

 (5) Subsection (3) applies to the company as if step 4 of the method statement in that subsection were replaced by the following step:

           Step 4. Reduce the step 3 result by the lesser of the following amounts:

                (a) the amount of any *tax loss, to the extent that the company can carry it forward to the next income year;
                (b) the amount of the deductions for tax losses used in making the *base assessment.
Note: Subsections (3), (4) and (5) also apply to the head company of a consolidated group, or the head company of a MEC group, that is treated as a life insurance company: see section 713‑505 of the Income Tax Assessment Act 1997.