Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 320.175

  (1)   If:

  (a)   a life insurance company had a liability before 1   July 2000 under a life insurance policy; and

  (b)   the liability or a part of the liability is to be discharged out of the company's virtual PST assets; and

  (c)   there is a transfer of the company's assets to the virtual PST to meet that liability or that part of the liability;

then, to the extent to which the assets are transferred to meet that liability or that part of the liability:

  (d)   if the transfer occurs before 1   October 2000--the transfer is to be disregarded for the purposes of the Income Tax Assessment Act 1997 ; or

  (e)   if the transfer occurs on or after 1   October 2000--the transfer is to be disregarded for the purposes of that Act, except:

  (i)   section   320 - 200 of that Act; and

  (ii)   any other provisions that rely on the operation of that section (for example, paragraph   320 - 15(1)(e) of that Act).

Note:   This means, amongst other things, that a life insurance company to which this subsection applies will not be able to claim a deduction in respect of the transfer under subsection   320 - 87(2) of that Act.

  (1A)   If subsection   (1) has applied to a life insurance company in respect of a transfer of assets to meet a liability or a part of a liability, that subsection does not apply again in respect of another transfer of assets to meet that liability or that part of the liability.

  (2)   If a life insurance company that is a friendly society establishes a virtual PST in the 2000 - 01 income year, the calculation of the transfer values of the company's virtual PST assets as at the end of that income year is to be made not later than 90 days after the end of that income year.