Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:6_10:p2
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 6 cl 10 (pt 2/5)
Character Range: 91941–94635

replaced by an equivalent membership interest (the replacement interest) in a company or in another trust.

713‑510  When this Subdivision applies (second case)

 (1) This Subdivision also provides for a deferral of the taxation consequences that would occur if:
 (a) a life insurance company transfers an asset (also the original asset) to its virtual PST or from its virtual PST where, apart from this Subdivision, section 320‑200 of the Income Tax Assessment Act 1997 would apply to the transfer; or
 (b) a life insurance company transfers an asset (also the original asset) to its segregated exempt assets where, apart from this Subdivision, section 320‑255 of the Income Tax Assessment Act 1997 would apply to the transfer;
where the transfer (also the deferral event) is made in connection with the life insurance company (also the member life insurance company) becoming a member of a consolidated group.

 (2) The relevant conditions in section 713‑520 must be met.

713‑515  Entities must choose the relief

 (1) This Subdivision applies only if the originating entity (for a section 713‑505 case) or the life insurance company (for a section 713‑510 case) chooses that it apply.

 (2) The choice must be made:
 (a) by the day the originating entity or the life insurance company, or the head company of the consolidated group of which it is a member, lodges its income tax return for the income year in which the deferral event happened; or
 (b) within a further time allowed by the Commissioner.

713‑520  Conditions

 (1) For a section 713‑505 case:
 (a) the originating entity must be:
 (i) a life insurance company that has virtual PST assets or segregated exempt assets and that is a member of a consolidatable group; or
 (ii) an entity that is unable to be a member of the same consolidatable group as a life insurance company because of section 713‑510 of the Income Tax Assessment Act 1997; or
 (iii) an entity that is, directly or indirectly, a subsidiary of a life insurance company and is a member of the same consolidated group as the life insurance company; and
 (b) the originating entity and the recipient entity must be members of the same consolidatable group or consolidated group or, if they are not, they would have been apart from section 713‑510 of the Income Tax Assessment Act 1997; and
 (c) any asset transferred by the originating entity must be transferred to the recipient entity at its transfer value.

 (2) For both a section 713‑505 case and a section 713‑510 case:
 (a) the total transfer values of the virtual PST assets of the member life insurance company just before a transfer of assets to which this Subdivision applies must be the same as the