Tax Laws Amendment (2004 Measures No. 2) Act 2004 (83 of 2004)

Schedule 1   Life insurance companies

Part 3   Amendments commencing on 24 October 2002

Income Tax Assessment Act 1997

97   Section 713-525

Repeal the section, substitute:

713-525 Obligation to value certain assets and liabilities

Division 320 has effect as if:

(a) the joining time when a *life insurance company becomes a *subsidiary member of a *consolidated group; and

(b) the time (the leaving time ) when a life insurance company ceases to be a subsidiary member of a consolidated group;

were a *valuation time for the purposes of sections 320-175 and 320-230.

Note: This means that:

· there must be a valuation of the virtual PST assets and virtual PST liabilities under section 320-175 (with the consequences set out in section 320-180), and a valuation of the segregated exempt assets and exempt life insurance policy liabilities under section 320-230 (with the consequences set out in section 320-235), as at the joining time; and

· there must be a valuation of these assets and liabilities as at the leaving time.