Taxation Determination

TD 92/144

Income tax: insurance: does subsection 26AH(4) apply to an owner of a life assurance policy when, as a result of a Court approved merger or takeover, a replacement policy is issued by the merged or acquiring life assurance company?

  • Please note that the PDF version is the authorised version of this ruling.

FOI status:

may be releasedFOI number: I 1213147

This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953, is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, the Determination applies to transactions entered into both before and after its date of issue.

1. No. Providing the replacement policy merely reflects the change of name of the life assurance company liable under the policy and there is no change in the contractual terms, there is no receipt, reinvestment or dealing with amounts under the policy for subsection 26AH(4) purposes by or on behalf of the policy holder.

Commissioner of Taxation


ATO references:
NO Insurance Industry Cell

ISSN 1038 - 3158

Related Rulings/Determinations:

TD 92/145
IT 2346

Subject References:
Life assurance companies
replacement of life assurance policies on merger or takeover

Legislative References:
ITAA 26AH(4)

Case References:
Permanent Trustee Co. of NSW Ltd. v FCT
(1940) 2 AITR 109
6 ATD 5