New Business Tax System (Consolidation and Other Measures) Act 2003 (16 of 2003)

Schedule 24   Consolidation: pay as you go (PAYG) instalments

Part 1   Amendment of the Taxation Administration Act 1953

3   At the end of section 45-330 in Schedule 1

Add:

Special rule for a life insurance company that is, or has been, the head company of a consolidated group

(4) A company's adjusted taxable income for the *base year is worked out under subsection (3) with the modification set out in subsection (5) if the company:

(a) is a *life insurance company for the base year; and

(b) has *tax losses transferred to it under Subdivision 707-A of the Income Tax Assessment Act 1997.

(5) Subsection (3) applies to the company as if step 4 of the method statement in that subsection were replaced by the following step:

Step 4. Reduce the step 3 result by the lesser of the following amounts:

(a) the amount of any *tax loss, to the extent that the company can carry it forward to the next income year;

(b) the amount of the deductions for tax losses used in making the *base assessment.

Note: Subsections (3), (4) and (5) also apply to the head company of a consolidated group, or the head company of a MEC group, that is treated as a life insurance company: see section 713-505 of the Income Tax Assessment Act 1997.