Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 2/14)
Character Range: 5046128–5048789

assets of any kind whose total *transfer value does not exceed the company's liabilities in respect of the policy.
 (1) A *life insurance company can at any time transfer an asset from its*segregated exempt assets in exchange for an amount of money equal to the *transfer value of the asset at the time of the transfer.
 (2) If a *life insurance company:
 (a) imposes any fees or charges in respect of *segregated exempt assets; or
 (b) imposes any fees or charges in respect of *exempt life insurance policies where the liabilities under the policies are to be discharged out of the company's segregated exempt assets; or
 (c) determines, at a time other than a *valuation time, that the total *transfer value of the company's segregated exempt assets as at that time exceeds the amount of the company's *exempt life insurance policy liabilities as at that time;
the company must, when the fees or charges are imposed or the excess is determined, as the case may be, transfer from the segregated exempt assets, assets having a total transfer value equal to the fees, charges or excess, as the case may be.
 (3) If:
 (a) any liabilities arise for the discharge of which a *life insurance company has *segregated exempt assets; or
 (b) any expenses are incurred by a life insurance company directly in respect of segregated exempt assets in relation to a period during which the assets are segregated exempt assets;
the life insurance company must pay from the segregated exempt assets any amounts required to discharge the liabilities or amounts equal to the expenses, as the case may be.

320‑255  Consequences of transfer of assets to or from segregated exempt assets
 (1) This section applies if:
 (a) an asset (other than money) is transferred from the company's *segregated exempt assets under subsection 320‑235(1) or 320‑250(1A), (1) or (2); or
 (b) an asset (other than money) is transferred to the company's *segregated exempt assets under subsection 320‑235(3) or section 320‑240.
 (2) In determining:
 (a) for the purposes of this Act (other than Division 40 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