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 of life insurance companies' subsidiaries joining consolidated group

SECTION 713-535   Losses of entities whose membership interests are complying superannuation assets of life insurance company  

713-535(1)    
This section applies if:

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

(b) at the joining time, the life insurance company owns, either directly or indirectly through one or more interposed entities, all the ^* membership interests in yet another entity (the life insurance subsidiary ) that becomes a ^* subsidiary member of the group at that time; and

(c) all the following membership interests are ^* complying superannuation assets of the life insurance company:

(i) the membership interests (if any) that the life insurance company owns directly in the life insurance subsidiary;

(ii) the membership interests (if any) that the life insurance company owns directly in the interposed entities; and

(d) the ^* head company of the group makes a ^* tax loss or ^* net capital loss under Subdivision 707-A because of a transfer from the life insurance subsidiary.

713-535(2)    
This Act operates for the purposes of income years ending after the transfer as if:

(a) the ^* tax loss were of the ^* complying superannuation class; or

(b) the ^* net capital loss were from ^* complying superannuation assets.

713-535(3)    
Subdivisions 707-B , 707-C and 707-D do not affect the ^* utilisation of the loss by the ^* head company of the ^* consolidated group.