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ATO Interpretative Decision

ATO ID 2002/357 (Withdrawn)

Income Tax

Excluded exempt income - Non resident proportion of foreign establishment amounts derived by a life insurance company
FOI status: may be released
  • This ATO ID has been withdrawn as the relevant provisions have been repealed and replaced with retrospective effect.
    This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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

Is the non resident proportion of foreign establishment amounts derived by a life insurance company which is exempt from tax under paragraph 320-35(1)(d) of the Income Tax Assessment Act 1997 (ITAA 1997) excluded exempt income for the purposes of subsection 36-20(3) of the ITAA 1997?

Decision

No, the non resident proportion of foreign establishment amounts derived by a life insurance company which is exempt from tax under paragraph 320-35(1)(d) of the ITAA 1997 is not excluded exempt income for the purposes of subsection 36-20(3) of the ITAA 1997.

Facts

An Australian/overseas fund or an overseas fund established by a life insurance company derives foreign establishment amounts. The non resident proportion of these amounts received by a life insurance company is exempt from income tax under paragraph 320-35(1)(d) of the ITAA 1997.

Reasons for Decision

Subsection 36-20(3) of the ITAA 1997 includes in excluded exempt income amounts of exempt income to which specific provisions of the Income Tax Assessment Act 1936 (ITAA 1936) apply. Subsection 36-20(3) of the ITAA 1997 does not list exempt income under paragraph 320-35(1)(d) of the ITAA 1997 as excluded exempt income.

( Note: this issue has been referred to Government)

Date of decision:  5 July 2001

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

Legislative References:
Income Tax Assessment Act 1997
   subsection 36-20(3)
   paragraph 320-35(1)(d)

Related ATO Interpretative Decisions
ATO ID 2002/314
ATO ID 2002/356
ATO ID 2002/357

Keywords
Life assurance income
Life assurance
Precedent

Business Line:  Public Groups and International

Date of publication:  28 March 2002

ISSN: 1445-2782

history
  Date: Version:
  5 July 2001 Original statement
You are here 10 February 2006 Archived

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