Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 713 - Rules for particular kinds of entities  

Subdivision 713-M - General insurance companies  

Liabilities and reserves of general insurance companies joining and leaving consolidated groups

SECTION 713-715   If general insurance company joins consolidated group  

713-715(1)    
This section applies if a ^* general insurance company becomes a ^* subsidiary member of a ^* consolidated group at a time (the joining time ).

713-715(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.

713-715(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.