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-L - Life insurance companies  

Losses for life insurance companies leaving consolidated group

SECTION 713-570   Certain losses transferred to leaving company  

713-570(1)    
This section applies if:

(a) a ^* life insurance company ceases to be a ^* subsidiary member of a ^* consolidated group at a time (the leaving time ); and

(b) ignoring section 713-505 , at the leaving time, no other ^* member of the group is a life insurance company that has a ^* complying superannuation asset pool; 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 ^* complying superannuation assets.

713-570(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.

713-570(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.