Income Tax Assessment Act 1997
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Hide history noteSECTION 713-720 If general insurance company leaves consolidated group 713-720(1)
This section applies if a * general insurance company ceases to be a * subsidiary member of a * consolidated group at a time (the leaving time ) in an income year (the leaving year ).
713-720(2)
The object of this section is to ensure that:
(a) the * head company of the * consolidated group bears the income tax consequences relating to changes before the leaving time in the affected values; and
(b) the * general insurance company bears the income tax consequences relating to changes after the leaving time in the affected values.
Head company ' s income or deduction
713-720(3)
For the head company core purposes set out in section 701-1 (Single entity rule) relating to the leaving year (but not later income years), the affected sections have effect as if each of the affected values at the end of the leaving year for the * head company of the * consolidated group were increased by the relevant value for the * general insurance company at the end of the previous income year worked out under subsection (5).
General insurance company ' s income or deduction
713-720(4)
For the entity core purposes set out in section 701-1 (Single entity rule) relating to the * general insurance company and the leaving year, the affected sections have effect as if each of the affected values for the general insurance company at the end of the previous income year were worked out under subsection (5).
Working out affected values at the end of the previous income year
713-720(5)
Work out each of the affected values for the * general insurance company at the end of the previous income year as if it had ended at the leaving time.
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