A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 78.118 Portfolio transfers

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 78.118

  (1)   If an insurer (the first insurer ) enters into an arrangement, in the nature of a portfolio transfer, with another insurer for the other insurer:

  (a)   to act as the insurer in relation to an * insurance policy; or

  (b)   to meet the first insurer's liabilities arising under an insurance policy;

subsection   38 - 60(1) and this Division apply, from the time the arrangement takes effect, as if the other insurer were an insurer in relation to the policy.

Note:   Subsection   38 - 60(1) provides that certain supplies to insurers are GST - free.

  (2)   Without limiting subsection   (1):

  (a)   anything done after that time by the other insurer that, if it had been done by the first insurer, would have been done under the policy is taken, for the purposes of subsection   38 - 60(1) and this Division, to have been done by the other insurer under the policy; and

  (b)   sections   78 - 10 and 78 - 30 apply as if the other insurer were the insurer that supplied the policy; and

  (c)   section   78 - 18 applies as if the insurer that settles the claim referred to in paragraph   78 - 18(1)(b) or (3)(b) (as the case requires) has the * increasing adjustment under that section, regardless of which insurer was paid the excess to which the adjustment relates.