Income Tax Assessment Act 1997
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Hide history noteSECTION 713-580 Valuing certain liabilities where life insurance company leaves group 713-580(1)
Despite section 711-45 , if the leaving entity mentioned in step 4 in the table in section 711-20 is a * life insurance company, the leaving entity ' s liabilities mentioned in this section are to be valued as mentioned in this section.
713-580(2)
To avoid doubt, those liabilities are the liabilities that become those of the leaving entity because section 701-1 (Single entity rule) ceases to apply to the leaving entity when it ceases to be a * subsidiary member of the group.
713-580(3)
The value of the leaving entity ' s * complying superannuation liabilities (if any) is the amount worked out under section 320-190 at the leaving time.
713-580(4)
The value of the leaving entity ' s * exempt life insurance policy liabilities (if any) is the amount worked out under section 320-245 at the leaving time.
713-580(5)
Subsection (6) applies to a liability of the leaving entity if:
(a) the liability is under the * net risk component of a * life insurance policy; and
(b) the leaving entity could deduct under section 320-80 an amount for the * risk component of claims paid under the policy on or after the time it ceased to be a * member of the * consolidated group.
713-580(6)
The value of that liability is the * current termination value of the * net risk component of the * life insurance policy at the leaving time (calculated by an * actuary).
713-580(7)
The value of the leaving 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.
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