Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-35 - INSURANCE BUSINESS  

Division 320 - Life insurance companies  

Subdivision 320-D - Income tax, taxable income and tax loss of life insurance companies  

Taxable income and tax loss of life insurance companies

SECTION 320-143   Tax loss - ordinary class  

Working out a tax loss of the ordinary class

320-143(1)    
A *life insurance company ' s *tax loss of the ordinary class is a tax loss worked out under this Act on the basis of only:

(a) assessable income of the company that is not covered by subsection 320-137(2) ; and

(b) amounts (other than tax losses) that the company can deduct and are not covered by subsection 320-137(4) ; and

(c) *net exempt income of the company that is not attributable to *exempt income *derived:

(i) from the company ' s *complying superannuation assets; and

(ii) in relation to the period during which those assets were complying superannuation assets.

Note:

For the usual way of working out a tax loss: see section 36-10 . For other ways of working out a tax loss: see section 36-25 .

Deducting a tax loss of the ordinary class

320-143(2)    
A *life insurance company ' s *tax loss of the ordinary class can be deducted under this Act only from:

(a) *net exempt income of the company that is not attributable to *exempt income *derived:

(i) from the company ' s *complying superannuation assets; and

(ii) in relation to the period during which those assets were complying superannuation assets; and

(b) assessable income of the company that is not covered by subsection 320-137(2) , reduced by amounts (other than tax losses) that the company can deduct and are not covered by subsection 320-137(4) .

Note:

For the usual way of deducting a tax loss: see section 36-17 . For other ways of deducting a tax loss: see section 36-25 .