Tax Laws Amendment (2004 Measures No. 6) Act 2005 (23 of 2005)

Schedule 12   Transfer of life insurance business

Income Tax (Transitional Provisions) Act 1997

10   At the end of Division 170

Add:

Subdivision 170-D - Transfer of life insurance business

170-300 Transfer of life insurance business

If:

(a) all or part of the life insurance business of a life insurance company (the originating company ) is transferred to another life insurance company (the recipient company ):

(i) in accordance with a scheme confirmed by the Federal Court of Australia under Part 9 of the Life Insurance Act 1995; or

(ii) under the Financial Sector (Transfers of Business) Act 1999; and

(b) the originating company makes a capital loss from a CGT asset as a result of the transfer; and

(c) that capital loss is disregarded because of Subdivision 126-B of this Act;

Subdivision 170-C of the Income Tax Assessment Act 1997 has effect as if:

(d) that capital loss were a net capital loss transferred by the originating company to the recipient company by an agreement under section 170-150 of that Act; and

(e) the application year referred to in section 170-225 of that Act were the year in which the transfer of life insurance business took place.