Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:2_84:p24
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 2 cl 84 (pt 24/26)
Character Range: 189790–192385

the company's *segregated exempt assets under subsection 320‑235(2) or section 320‑240.

 (2) In determining:
 (a) for the purposes of this Act (other than Division 42 and Parts 3‑1 and 3‑3) whether an amount is included in, or can be deducted from, the assessable income of a *life insurance company in respect of the transfer of the asset; or
 (b) for the purposes of Parts 3‑1 and 3‑3:
 (i) whether the company made a *capital gain in respect of the transfer; or
 (ii) whether the company made a *capital loss in respect of the transfer;
the company is taken:
 (c) to have sold, immediately before the transfer, the asset transferred for a consideration equal to its *market value; and
 (d) to have purchased the asset again at the time of the transfer for a consideration equal to its market value.

 (3) If, apart from this subsection, section 320‑60 and subsection 320‑105(1), a *life insurance company could deduct an amount or apply a *capital loss as a result of the transfer of an asset to its *segregated exempt assets, the deduction or capital loss is disregarded until:
 (a) the asset ceases to exist; or
 (b) the asset, or a greater than 50% interest in it, is *acquired by an entity other than an entity that is an *associate of the company, immediately after the acquisition.

 (4) A *life insurance company cannot deduct an amount or apply a *capital loss as a result of the transfer of an asset from its *segregated exempt assets.

 (5) If an asset that is a unit of *plant is transferred from the *segregated exempt assets of a *life insurance company, the company must assume, for the purposes of Division 42, that:
 (a) the unit had, at all times during the period beginning when the asset was acquired or constructed by the company and ending immediately before the time of the transfer, been used by the company wholly for the purpose of producing assessable income; and
 (b) the company had deducted amounts for depreciation in respect of the asset during that period by using the formula in subsection 42‑160(3) or 42‑165(2A).

 (6) If an asset that is a unit of *plant is transferred to the *segregated exempt assets of a *life insurance company, then, in determining for the purposes of Division 42 whether an amount is included in, or can be deducted from, the company's assessable income as a result of the transfer, the company is taken:
 (a) to have, at the time immediately before the transfer, sold the asset for a consideration equal to its *market value at that time; and
 (b) to have, at the time of the transfer, purchased the asset again for a consideration