Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p65
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 65/95)
Character Range: 5714870–5717875

and liabilities at leaving time
Subdivision 713‑M—General insurance companies
Guide to Subdivision 713‑M
713‑700 What this Subdivision is about
Tax cost setting rules for general insurance companies joining consolidated group
713‑705 Certain assets taken to be retained cost base assets where general insurance company joins group
Liabilities and reserves of general insurance companies joining and leaving consolidated groups
713‑710 Treatment of liabilities and reserves for income year when general insurance company joins or leaves group
713‑715 If general insurance company joins consolidated group
713‑720 If general insurance company leaves consolidated group
713‑725 Treatment of certain assets and liabilities of general insurance companies
Division 715—Interactions between this Part and other areas of the income tax law
Subdivision 715‑A—Treatment of unrealised losses existing when ownership or control of a company changes before or during consolidation
Object
715‑15 Object of this Subdivision
Effect on Subdivision 165‑CC of a company becoming a member of a consolidated group
715‑25 Subdivision 165‑CC stops applying to earlier changeover time
715‑30 Meaning of 165‑CC tagged asset
715‑35 Meaning of final RUNL
165‑CC tagged assets that affect tax cost setting amounts
715‑50 Step 1 amount is reduced if membership interest in subsidiary member is 165‑CC tagged asset and business continuity test is failed
715‑55 Step 2 amount is affected if liability of subsidiary member is 165‑CC tagged asset of another group member and business continuity test is failed
165‑CC tagged assets that form loss denial pools of head company when consolidated group is formed
715‑60 Assets that the head company already owns
715‑70 Assets of subsidiary member that become those of head company
How Subdivision 165‑CC applies to consolidated groups
715‑75 Extension of single entity rule and entry history rule
Effect on Subdivision 165‑CC of entity leaving consolidated group
715‑80 Application of sections 715‑85 to 715‑110
715‑85 First changeover time for leaving company at or after leaving time
715‑90 How business continuity test applies if leaving time is changeover time for leaving company
715‑95 If ownership and control of leaving entity have not changed since head company's last changeover time
715‑100 First choice: adjustable values of leaving assets reduced to nil
715‑105 Second choice: head company's final RUNL applied in reducing adjustable values of leaving assets that are loss assets
715‑110 Third choice: loss denial pool of leaving entity created
Effect of assets in loss denial pool of head company becoming assets of leaving entity
715‑120 What happens
715‑125 First choice: adjustable values of leaving assets reduced to nil
715‑130 Second choice: pool's loss denial balance applied in reducing adjustable values of leaving assets that are loss assets
715‑135 Third choice: loss denial pool of leaving entity created
Effect of first and second choices on various kinds of assets