Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 713.570

  (1)   This section applies if:

  (a)   a * life insurance company ceases to be a * subsidiary member of a * consolidated group at a time (the leaving time ); and

  (b)   ignoring section   713 - 505, at the leaving time, no other * member of the group is a life insurance company that has a * complying superannuation asset pool; and

  (c)   at the leaving time, the * head company has either:

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

  (ii)   a * net capital loss from * complying superannuation assets.

  (2)   This Act operates (except so far as the contrary intention appears) for the purposes of income years ending after the leaving time as if:

  (a)   the * life insurance company had made the loss for the income year in which the leaving time occurs; and

  (b)   the * head company had not made the loss for the income year for which it made the loss.

Note:   Section   707 - 410 (Exit history rule does not treat entity as having made a loss) does not prevent the life insurance company from having the loss under this section, because that section merely states that the company is not taken under section   701 - 40 (Exit history rule) to have made a loss.

  (3)   The * life insurance company is not prevented from * utilising the loss for the income year in which the leaving time occurs merely because this Act operates as if the life insurance company had made the loss for that year.