(1) This section applies if:
(a) a * life insurance company becomes a * member of a * consolidated group at a time (the joining time ); and
(b) at the joining time, the life insurance company owns, either directly or indirectly through one or more interposed entities, all the * membership interests in yet another entity (the life insurance subsidiary ) that becomes a * subsidiary member of the group at that time; and
(c) all the following membership interests are * segregated exempt assets of the life insurance company:
(i) the membership interests (if any) that the life insurance company owns directly in the life insurance subsidiary;
(ii) the membership interests (if any) that the life insurance company owns directly in the interposed entities.
(2) A * tax loss or * net capital loss of the life insurance subsidiary for an income year ending before the joining time cannot be * utilised by the life insurance subsidiary for an income year ending after that time.
Note: This prevents the loss from being transferred to the head company of the consolidated group under Subdivision 707-A (because it means the life insurance subsidiary could not have utilised the loss for the trial year). As a result, section 707-150 prevents any other entity from utilising the loss for an income year ending after the joining time.
Imputation rules for life insurance companies joining consolidated group