Document ID: chunk:federal_register_of_legislation:C2010C00584:clause:6_25:p7
Version: federal_register_of_legislation:C2010C00584
Segment Type: clause
Provision Reference: sch 6 cl 25 (pt 7/10)
Character Range: 88029–90788

(3) During the gap, the *head company of the *consolidated group may transfer an asset from the head company's *segregated exempt assets to provide for payments of the *immediate annuity under the fused entities' policy.

Effect of transfer

 (4) If the *head company of the *consolidated group transfers an asset under subsection (3):
 (a) section 320‑255 applies to the asset in the same way as that section applies to an asset transferred under subsection 320‑250(2); and
 (b) whichever one of subsections (5) and (6) is relevant affects the *head company of the *consolidated group for the income year in which the gap occurs.

Income if policy is not a qualifying security

 (5) If the fused entities' policy is not a qualifying security (as defined in section 159GP of the Income Tax Assessment Act 1936), the *head company's assessable income includes the amount that, if the fused entities had not been *members of the *consolidated group:
 (a) would have been included in the policyholder's assessable income under section 27H of that Act in connection with the policy; and
 (b) would have been derived in the gap.

Income or deduction if policy is a qualifying security

 (6) If the fused entities' policy is a qualifying security (as defined in section 159GP of the Income Tax Assessment Act 1936):
 (a) the *head company's assessable income includes the amount (if any) that, if the fused entities had not been *members of the *consolidated group:
 (i) would have been included in the policyholder's assessable income under section 159GQ of that Act in connection with the policy; and
 (ii) would have been attributable to the gap; or
 (b) the head company may deduct the amount (if any) that, if the fused entities had not been members of the consolidated group:
 (i) would have been a deduction allowable to the policyholder under section 159GQ of that Act in connection with the policy; and
 (ii) would have been attributable to the gap.

Liabilities for life insurance companies leaving consolidated group

713‑565  Treatment of certain liabilities for income year when life insurance company leaves consolidated group

 (1) This section affects how paragraph 320‑15(1)(h) and section 320‑85 apply if:
 (a) a *life insurance company ceases to be a *subsidiary member of a *consolidated group at a time (the leaving time); and
 (b) at the leaving time, the *life insurance company has one or more liabilities under the *net risk components of life insurance policies.

Note: Paragraph 320‑15(1)(h) and section 320‑85 both operate on the basis of a comparison of the value of a life insurance company's liabilities under the net risk components of life insurance policies at the end of the current year with the value of those liabilities at