Document ID: chunk:federal_register_of_legislation:C2010C00648:clause:1_82
Version: federal_register_of_legislation:C2010C00648
Segment Type: clause
Provision Reference: sch 1 cl 82
Character Range: 66828–68259

82  Subsection 320‑175(1)
Repeal the subsection, substitute:

 (1) If:
 (a) a life insurance company had a liability before 1 July 2000 under a life insurance policy; and
 (b) the liability or a part of the liability is to be discharged out of the company's virtual PST assets; and
 (c) there is a transfer of the company's assets to the virtual PST to meet that liability or that part of the liability;
then, to the extent to which the assets are transferred to meet that liability or that part of the liability:
 (d) if the transfer occurs before 1 October 2000—the transfer is to be disregarded for the purposes of the Income Tax Assessment Act 1997; or
 (e) if the transfer occurs on or after 1 October 2000—the transfer is to be disregarded for the purposes of that Act, except:
 (i) section 320‑200 of that Act; and
 (ii) any other provisions that rely on the operation of that section (for example, paragraph 320‑15(1)(e) of that Act).

Note: This means, amongst other things, that a life insurance company to which this subsection applies will not be able to claim a deduction in respect of the transfer under subsection 320‑87(2) of that Act.

 (1A) If subsection (1) has applied to a life insurance company in respect of a transfer of assets to meet a liability or a part of a liability, that subsection does not apply again in respect of another transfer of assets to meet that liability or that part of the liability.