Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:6_1:p1
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 6 cl 1 (pt 1/4)
Character Range: 80181–83031

1  At the end of Division 713
Add:

Subdivision 713‑L—Life insurance companies

Guide to Subdivision 713‑L

713‑500  What this Subdivision is about

      This Subdivision sets out special rules for:

                (a) a life insurance company that becomes, or ceases to be, a member of a consolidated group; and
                (b) the head company of a consolidated group where a life insurance company is a subsidiary member of the group.

Table of sections

Operative provisions

713‑505 Head company treated as a life insurance company
713‑510 Certain subsidiaries of life insurance companies cannot be members of consolidated group
713‑515 Modification of cost setting rules
713‑520 Valuing certain liabilities
713‑525 Obligation to value virtual PST assets and segregated exempt assets
713‑530 Certain amounts transferred to leaving entity

[This is the end of the Guide.]

Operative provisions

713‑505  Head company treated as a life insurance company

  This Act, and the Income Tax Rates Act 1986, apply to the *head company of a *consolidated group as if it were a *life insurance company for an income year if one or more life insurance companies are *subsidiary members of the group at any time during that year.

713‑510  Certain subsidiaries of life insurance companies cannot be members of consolidated group

 (1) An entity cannot be a *subsidiary member of the same *consolidated group or *consolidatable group of which a *life insurance company is a *member if:
 (a) the life insurance company owns, either directly or indirectly, *membership interests in the entity; and
 (b) either:
 (i) some, but not all, of those membership interests are *virtual PST assets of the life insurance company; or
 (ii) some, but not all, of those membership interests are *segregated exempt assets of the life insurance company.

Note: The entity could, however, be a member of another consolidated group or consolidatable group.

 (2) An entity cannot continue to be a *subsidiary member of a *consolidated group if:
 (a) a *life insurance company is a *member of the group; and
 (b) the life insurance company owns, either directly or indirectly, *membership interests in the entity; and
 (c) had the entity not been a subsidiary member of the group, either:
 (i) some, but not all, of those membership interests would be *virtual PST assets of the life insurance company; or
 (ii) some, but not all, of those membership interests would be *segregated exempt assets of the life insurance company.

713‑515  Modification of cost setting rules

 (1) If an entity that becomes a *subsidiary member of a *consolidated group at a time (the joining time) is a *life insurance company, these assets are retained cost base assets:
 (a) a *virtual PST asset, or a *segregated exempt asset, of the company; and
 (b) another asset of the company