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

Schedule 1   Life insurance companies

Part 1   Amendments commencing on 30 June 2000

Income Tax Assessment Act 1997

38   Section 320-180

Repeal the section, substitute:

320-180 Consequences of a valuation under section 320-175

Transfer from the virtual PST

(1) If the total *transfer value of the company's *virtual PST assets as at a *valuation time exceeds the sum of:

(a) the company's *virtual PST liabilities as at that time; and

(b) any reasonable provision made by the company at that time in its accounts for liability for income tax in respect of those assets;

the company must transfer, from the *virtual PST, assets of any kind having a total transfer value equal to the excess.

(2) A transfer under subsection (1) must be made within the period of 30 days starting immediately after:

(a) the day on which the total *transfer value and the *virtual PST liabilities (as at the *valuation time) were calculated; or

(b) if those amounts were calculated on different days - the later of those days.

The transfer, once made, is taken to have been made at the valuation time (whether or not the transfer is made within those 30 days).

Note: A life insurance company that fails to comply with subsections (1) and (2) is liable to an administrative penalty: see section 288-70 in Schedule 1 to the Taxation Administration Act 1953.

Transfer to the virtual PST

(3) If the total *transfer value of the company's *virtual PST assets as at a *valuation time is less than the sum of:

(a) the company's *virtual PST liabilities as at that time; and

(b) any reasonable provision made by the company at that time in its accounts for liability for income tax in respect of those assets;

the company can transfer, to the *virtual PST, assets of any kind having a total transfer value not exceeding the difference.

(4) A transfer under subsection (3) is taken to have been made at the *valuation time if it is made within the period of 30 days starting immediately after:

(a) the day on which the total *transfer value and the *virtual PST liabilities (as at the valuation time) were calculated; or

(b) if those amounts were calculated on different days - the later of those days.