Taxation Laws Amendment Act (No. 1) 1995 (120 of 1995)

Schedule 1   VARIOUS AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936

Part 1   BONUS SHARES AND LIFE ASSURANCE COMPANIES

5   Section 6BA

Add at the end:

"(8) For the purposes of subsections (4A) and (6), if an amount that is payable to a life assurance company in respect of shares in another company has been or will be taken into account in determining an amount of any profit arising or loss incurred on the disposal by the life assurance company of those shares, or other shares, in the other company:

(a) if the shares or the other shares are assets included in the insurance funds of the life assurance company-the amount is taken to be an amount that has been or will be included in the fund assessable income of the life assurance company of a year of income; and

(b) in any other case-the amount is taken to be an amount that has been or will be included in the assessable income, other than the fund assessable income, of the life assurance company of a year of income.

"(9) In this section, 'fund assessable income', 'life assurance company' and 'the insurance funds' have the same respective meanings as in Division 8 of Part III.".