Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p12
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 12/30)
Character Range: 6174651–6177284

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.
 (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 a change in *value of the liabilities before the leaving time; and
 (b) the *life insurance company bears the income tax consequences relating to a change in value of the liabilities after the leaving time.

Head company's income or deduction from liabilities
 (3) For the head company core purposes set out in section 701‑1 (Single entity rule) relating to the income year in which the leaving time occurs (but not later income years), paragraph 320‑15(1)(h) and section 320‑85 have effect as if:
 (a) the *head company of the *consolidated group had the liabilities at the end of that income year; and
 (b) the *value of the liabilities at the end of that income year had been the amount that was actually the value of the liabilities (for the *life insurance company) at the leaving time.

Life insurance company's income or deduction from liabilities
 (4) For the entity core purposes set out in section 701‑1 (Single entity rule) relating to the *life insurance company and the income year in which the leaving time occurs, paragraph 320‑15(1)(h) and section 320‑85 have effect as if the *value of the liabilities at the end of the previous income year had been the amount that was actually the value of the liabilities (for the life insurance company) at the leaving time.

Losses for life insurance companies leaving consolidated group

713‑570  Certain losses transferred to leaving company
 (1) This section applies if:
 (a) a *life insurance company ceases to be a *subsidiary member of a *consolidated group at a time (the leaving time); and
 (b) ignoring section 713‑505, at the leaving time, no other *member of the group is a life insurance company that has a *complying superannuation asset pool; and
 (c) at the leaving time, the *head company has either:
 (i) a *tax loss of the *complying superannuation class; or
 (ii) a *net capital loss from *complying superannuation assets.
 (2) This Act operates (except so far as the contrary intention appears) for the purposes of income years ending after the leaving time as if:
 (a) the *life insurance company had made the loss for the income year in which the leaving time occurs; and
 (b) the *head company had not made the loss for the income year for which it made the loss.
Note: Section 707‑410 (Exit history rule does not treat entity as having made a loss) does not prevent the