Document ID: chunk:federal_register_of_legislation:C2010C00584:clause:6_26:p2
Version: federal_register_of_legislation:C2010C00584
Segment Type: clause
Provision Reference: sch 6 cl 26 (pt 2/3)
Character Range: 100102–102622

on the basis of a comparison of the value of the outstanding claims liability of a general insurance company at the end of the current year with the value of that liability at the end of the previous income year, so that:

(a) section 321‑10 includes an amount in the company's assessable income for the current year if the value at the end of the current year is less than the value at the end of the previous income year; and

(b) section 321‑15 allows a 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.

Note 2: Sections 321‑50 and 321‑55 in that Schedule both operate on the basis of a comparison of the value of the unearned premium reserve of a general insurance company at the end of the current year with the value of that reserve at the end of the previous income year, so that:

(a) section 321‑50 includes an amount in the company's assessable income for the current year if the value at the end of the current year is less than the value at the end of the previous income year; and

(b) section 321‑55 allows a 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.

713‑715  If general insurance company joins consolidated group

 (1) This section applies if a *general insurance company becomes a *subsidiary member of a *consolidated group at a time (the joining time).

 (2) The object of this section is to ensure that the *head company of the *consolidated group bears the income tax consequences relating to changes after the joining time in the affected values.

Note: The general insurance company bears the income tax consequences relating to a change in the affected values before the joining time, because section 701‑30 ensures that the affected sections apply in relation to a part of the income year before that time when the company was not a subsidiary member of a consolidated group as if that part were an income year.

 (3) The affected sections apply for the head company core purposes set out in section 701‑1 (Single entity rule) as if each of the affected values at the end of the last income year ending before the joining time were the amount that would have been that value had that income year ended just before the joining time.

713‑720  If general insurance company leaves consolidated group

 (1) This section applies if a *general insurance company ceases to be a *subsidiary member of a *consolidated