Income Tax Assessment Act 1997
SECTION 320-37 Non-assessable non-exempt income 320-37(1)
These amounts *derived by a *life insurance company are not assessable income and are not *exempt income:
(a) amounts of ordinary income and statutory income derived from *segregated exempt assets, being income that relates to the period during which the assets were segregated exempt assets;
(b) amounts of ordinary income and statutory income derived from the *disposal of units in a *pooled superannuation trust;
(c) if an *Australian/overseas fund or an *overseas fund established by the company derived foreign establishment amounts - the foreign resident proportion of the foreign establishment amounts;
(d) if the company is a *friendly society:
(i) amounts derived before 1 July 2001 that are exempt from income tax under section 50-1 ; and
(ii) amounts derived on or after 1 July 2001 but before 1 January 2003, that are attributable to *income bonds, *funeral policies or *sickness policies; and
(iii) amounts derived on or after 1 July 2001 but before 1 January 2003, that are attributable to *scholarship plans and would have been exempt from income tax under section 50-1 if they had been received before 1 July 2001; and
(iv) amounts derived on or after 1 January 2003 that are attributable to income bonds, funeral policies or *sickness policies, that were issued before 1 January 2003; and
(v) amounts derived on or after 1 January 2003 that are attributable to scholarship plans issued before 1 January 2003 and that would have been exempt from income tax if they had been received before 1 July 2001.
Note:
The effect of this section is modified when the life insurance business of a life insurance company is transferred to another life insurance company: see section 320-325 .
320-37(1A)
For the purposes of paragraph (1)(c), foreign establishment amounts for the *life insurance company means the total amount of assessable income that was *derived in the income year:
(a) in the course of the carrying on by the company of a business in a foreign country at or through a *permanent establishment of the company in that country; and
(b) from sources in that or any other foreign country; and
(c) from assets that:
(i) are attributable to the permanent establishment; and
(ii) are held to meet the liabilities under the *life insurance policies issued by the company at or through the permanent establishment.
320-37(2)
For the purposes of paragraph (1)(c), the foreign resident proportion of the *foreign establishment amounts is the amount worked out using the formula:
Foreign
establishment amounts |
× | Foreign resident foreign
establishment policy liabilities All foreign establishment policy liabilities |
where:
all foreign establishment policy liabilities
means the average value for the income year (as calculated by an *actuary) of the policy liabilities (as defined in the *Valuation Standard) for all *life insurance policies that:
(a) were included in the class of *life insurance business to which the company ' s *Australian/overseas fund or *overseas fund relates; and
(b) were issued by the company at or through the *permanent establishment to which the foreign establishment amounts relate.
foreign resident foreign establishment policy liabilities
means the average value for the income year (as calculated by an *actuary) of the policy liabilities (as defined in the *Valuation Standard) for all *life insurance policies that:
(a) are *foreign resident life insurance policies; and
(b) were issued by the company at or through the *permanent establishment to which the foreign establishment amounts relate.
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