Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 316.70

Value of the friendly society

             (1)  The value of the * friendly society is the sum, worked out in accordance with this section, of the friendly society's existing business value and its adjusted net worth on the day (the applicable accounting day ) identified under subsection (3).

Eligible actuary and Australian actuarial practice

             (2)  The sum is to be worked out, according to Australian actuarial practice, by an * actuary who is not an employee of:

                     (a)  the * friendly society; or

                     (b)  a health/life insurance subsidiary of the friendly society; or

                     (c)  an entity of which the friendly society is to become a * wholly-owned subsidiary under the demutualisation.

Applicable accounting day

             (3)  The applicable accounting day is:

                     (a)  if an accounting period of the * friendly society ends on the day (the demutualisation resolution day ) identified under subsection (4)--that day; or

                     (b)  in any other case--the last day of the most recent accounting period of the friendly society ending before the demutualisation resolution day.

Demutualisation resolution day

             (4)  The demutualisation resolution day is:

                     (a)  the day on which the resolution to proceed with the demutualisation is passed; or

                     (b)  if, under the demutualisation, the whole of the * life insurance business of the * friendly society or of a health/life insurance subsidiary of the friendly society is transferred to another company under a scheme confirmed by the Federal Court of Australia--the day (or the last day) on which the transfer takes place.

Adjustment for changes after applicable accounting day

             (5)  In a case covered by paragraph (3)(b), if any significant change in the amount of the existing business value or adjusted net worth occurs between the applicable accounting day and the demutualisation resolution day, the amount is to be adjusted to take account of the change.

Continued business assumption

             (6)  In working out the existing business value or the adjusted net worth, assume:

                     (a)  that after the applicable accounting day the * friendly society, and any health/life insurance subsidiary of the friendly society, will continue to conduct * business and any other activity in the same way as before that day, and will not conduct any different business or other activity; and

                     (b)  that the demutualisation will not occur; and

                     (c)  that any health/life insurance subsidiary of the friendly society will continue to be a * wholly-owned subsidiary of the friendly society.

Expenditure assumption

             (7)  In working out the existing business value, assume that expenditure that the * friendly society and any of its health/life insurance subsidiaries will incur, in conducting * business, on recurring items after the demutualisation resolution day will be of the same kinds and amounts (increased to take account of any inflation) as it incurred in the accounting period, or part of an accounting period, ending on the demutualisation resolution day.

Friendly society's gains and losses



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback