Document ID: chunk:federal_register_of_legislation:C2010C00584:clause:6_25:p9
Version: federal_register_of_legislation:C2010C00584
Segment Type: clause
Provision Reference: sch 6 cl 25 (pt 9/10)
Character Range: 92952–95635

time, no other *member of the group is a life insurance company that has a *virtual PST; and
 (c) at the leaving time, the *head company has either:
 (i) a *tax loss of the *complying superannuation class; or
 (ii) a *net capital loss from *virtual PST assets.

 (2) This Act operates (except so far as the contrary intention appears) for the purposes of income years ending after the leaving time as if:
 (a) the *life insurance company had made the loss for the income year in which the leaving time occurs; and
 (b) the *head company had not made the loss for the income year for which it made the loss.

Note: Section 707‑410 (Exit history rule does not treat entity as having made a loss) does not prevent the life insurance company from having the loss under this section, because that section merely states that the company is not taken under section 701‑40 (Exit history rule) to have made a loss.

 (3) The *life insurance company is not prevented from *utilising the loss for the income year in which the leaving time occurs merely because this Act operates as if the life insurance company had made the loss for that year.

Tax cost setting rules for life insurance companies leaving consolidated group

713‑575  Terminating value of certain assets where life insurance company leaves group

 (1) This section applies if a *life insurance company (the leaving entity) ceases to be a *subsidiary member of a *consolidated group at a time (the leaving time).

 (2) For the purposes of applying section 711‑25 in relation to the leaving entity, the *head company's terminating value for an asset that it holds at the leaving time because the leaving entity is taken by subsection 701‑1(1) to be a part of the head company is the *transfer value of the asset at the leaving time, if the asset is:
 (a) a *virtual PST asset, or a *segregated exempt asset, of the head company; or
 (b) held by the head company for the purpose of discharging its liabilities under the *net investment component of ordinary life insurance policies (except policies that provide for *participating benefits or *discretionary benefits under *life insurance business carried on in Australia).

713‑580  Valuing certain liabilities where life insurance company leaves group

 (1) Despite section 711‑45, if the leaving entity mentioned in step 4 in the table in section 711‑20 is a *life insurance company, the leaving entity's liabilities mentioned in this section are to be valued as mentioned in this section.

 (2) To avoid doubt, those liabilities are the liabilities that become those of the leaving entity because section 701‑1 (Single entity rule) ceases to apply to the leaving entity when