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  

Tax cost setting rules for life insurance companies joining consolidated group

SECTION 713-520   Valuing certain liabilities where life insurance company joins group  

713-520(1)    
Despite section 705-70 , if the joining entity mentioned in step 2 in the table in section 705-60 is a ^* life insurance company, the joining entity ' s liabilities mentioned in this section are to be valued as mentioned in this section.

713-520(2)    

The value of the joining entity ' s ^* complying superannuation liabilities (if any) is the amount worked out under section 320-190 at the joining time.

713-520(3)    
The value of the joining entity ' s ^* exempt life insurance policy liabilities (if any) is the amount worked out under section 320-245 at the joining time.

713-520(4)    
Subsection (5) applies to a liability of the joining entity if:

(a) the liability is under the ^* net risk component of a ^* life insurance policy; and

(b) the joining entity could deduct under section 320-80 an amount for the ^* risk component of claims paid under the policy had it not become a ^* member of the ^* consolidated group.

713-520(5)    
The value of that liability is the ^* current termination value of the ^* net risk component of the ^* life insurance policy at the joining time (calculated by an ^* actuary).

713-520(6)    

The value of the joining entity ' s liabilities under the ^* net investment component of ordinary life insurance policies is the amount worked out for those liabilities under subsection 320-190(2) as if those liabilities were ^* complying superannuation liabilities.