Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p14
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 14/30)
Character Range: 6179562–6182502

amount worked out under section 320‑245 at the leaving time.
 (5) Subsection (6) applies to a liability of the leaving entity if:
 (a) the liability is under the *net risk component of a *life insurance policy; and
 (b) the leaving entity could deduct under section 320‑80 an amount for the *risk component of claims paid under the policy on or after the time it ceased to be a *member of the *consolidated group.
 (6) The value of that liability is the *current termination value of the *net risk component of the *life insurance policy at the leaving time (calculated by an *actuary).
 (7) The value of the leaving entity's liabilities under the *net investment component of ordinary life insurance policies is the amount worked out for those liabilities under subsection 320‑190(2) as if those liabilities were *complying superannuation liabilities.

713‑585  Obligation to value certain assets and liabilities at leaving time
  Division 320 has effect as if the time when a *life insurance company ceases to be a *subsidiary member of a *consolidated group were a *valuation time for the purposes of sections 320‑175 and 320‑230.
Note: This means that there must be a valuation of the complying superannuation assets and complying superannuation liabilities under section 320‑175 (with the consequences set out in section 320‑180), and a valuation of the segregated exempt assets and exempt life insurance policy liabilities under section 320‑230 (with the consequences set out in section 320‑235), as at that time.

Subdivision 713‑M—General insurance companies

Guide to Subdivision 713‑M

713‑700  What this Subdivision is about
      This Subdivision sets out special rules for a general insurance company becoming or ceasing to be a subsidiary member of a consolidated group.

Table of sections

Tax cost setting rules for general insurance companies joining consolidated group
713‑705 Certain assets taken to be retained cost base assets where general insurance company joins group

Liabilities and reserves of general insurance companies joining and leaving consolidated groups
713‑710 Treatment of liabilities and reserves for income year when general insurance company joins or leaves group
713‑715 If general insurance company joins consolidated group
713‑720 If general insurance company leaves consolidated group
713‑725 Treatment of certain assets and liabilities of general insurance companies

Tax cost setting rules for general insurance companies joining consolidated group

713‑705  Certain assets taken to be retained cost base assets where general insurance company joins group
 (1) This section applies if:
 (a) a *general insurance company becomes a *subsidiary member of a *consolidated group at a time (the joining time); and
 (b) that company has demutualised under Division 9AA of Part III of the Income Tax Assessment Act 1936; and
 (c) in the period starting just after the company demutualises and ending at