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ATO Interpretative Decision

ATO ID 2002/197

Income Tax

Premiums received by a friendly society from ordinary bundled endowment policies
FOI status: may be released

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

How does subsection 320-15(a) of the Income Tax Assessment Act 1997 (ITAA 1997) apply to ordinary bundled endowment policies issued by a friendly society?

Decision

Paragraph 320-15(a) of ITAA 1997 includes in assessable income all life insurance premiums received from ordinary bundled endowment policies issued by a friendly society?

Facts

A friendly society issues ordinary bundled endowment policies and receives premiums from policyholders.

Reasons for Decision

Paragraph 320-15(a) of ITAA 1997 includes in the assessable income of a friendly society the total amount of premiums received from ordinary bundled endowment policies.

Date of decision:  27 August 2001

Year of income:  Year ended 30 June 2001 and subsequent income years

Legislative References:
Income Tax Assessment Act 1997
   Paragraph 320-15(a)

Related ATO Interpretative Decisions
ATO ID 2002/198
ATO ID 2002/199
ATO ID 2002/200
ATO ID 2002/201

Keywords
Life assurance
Endowment insurance

Siebel/TDMS Reference Number:  DW291373

Business Line:  Public Groups and International

Date of publication:  28 February 2002

ISSN: 1445-2782


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