Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-35 - INSURANCE BUSINESS  

Division 320 - Life insurance companies  

Subdivision 320-I - Transfers of business  

Operative provisions

SECTION 320-340   Continuous disability policies  

320-340(1)    
This section has effect if:

(a) the originating company and the recipient company were members of the same *wholly-owned group just before the transfer took place; and

(b) all of the liabilities under the *continuous disability policies of the originating company are transferred to the recipient company; and

(c) the transfer took place before the income year in which 1 July 2005 occurs; and

(d) an amount (the section 320-30 amount ) would have been included in the assessable income of the originating company under section 320-30 for the income year in which the transfer took place if the transfer had not taken place.

320-340(2)    
Section 320-30 does not apply to the originating company for the income year in which the transfer took place or a later income year.

320-340(3)    
The amount worked out using this formula is included in the assessable income of the originating company for the income year in which the transfer took place:

Section 320-30 amount   ×

Continuous disability policy days 365

where:

continuous disability policy days
means the number of days during the income year in which the transfer took place that the originating company held *continuous disability policies.

320-340(4)    
The section 320-30 amount, reduced by the amount included in the assessable income of the originating company under subsection (3), is included in the assessable income of the recipient company for the income year in which the transfer took place.

320-340(5)    
For each income year after the year in which the transfer took place and that is a relevant income year for the purposes of section 320-30 , the recipient company ' s assessable income includes the amount that would have been included in the originating company ' s assessable income under that section for that year if the transfer had not taken place.