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  

Guide to Subdivision 320-D

SECTION 320-131   Overview of Subdivision  

Working out the income tax

320-131(1)  


In any income year, a life insurance company can have:


(a) a taxable income of the complying superannuation class and/or a taxable income of the ordinary class; or


(b) a tax loss of the complying superannuation class and/or a tax loss of the ordinary class; or


(c) a taxable income of one class and a tax loss of the other class.

Note:

The taxable incomes mentioned in paragraph (a) are taxed at different rates: see section 23A of the Income Tax Rates Act 1986 .

320-131(2)  
Taxable incomes and tax losses of both classes are taken into account in working out the amount of income tax that the company has to pay for the income year (see section 320-134 ). That amount is then taken to be the income tax on the company's taxable income for that income year. Working out taxable income and tax loss of each class

320-131(3)  
In general, the rules in this Act about working out a company's taxable income or tax loss, or deducting a company's tax loss, apply to a life insurance company in relation to:


(a) working out a taxable income or tax loss of a particular class; or


(b) deducting a tax loss of a particular class.

320-131(4)  
However, that general rule is subject to the following:


(a) sections 320-137 to 320-143 , which allocate amounts of incomes and deductions for the purposes of working out a taxable income or tax loss of a particular class;


(b) subsections 320-141(2) and 320-143(2) , which provide that tax losses of a particular class can be deducted only from incomes in respect of that class;


(c) section 320-149 , which sets out the provisions in this Act that have effect only in relation to a taxable income or tax loss of the ordinary class.



TABLE OF SECTIONS
TABLE OF SECTIONS
General rules
320-133 Object of Subdivision
320-134 Income tax of a life insurance company
320-135 Taxable income and tax loss of each of the 2 classes
Taxable income and tax loss of life insurance companies
320-137 Taxable income - complying superannuation class
320-139 Taxable income - ordinary class
320-141 Tax loss - complying superannuation class
320-143 Tax loss - ordinary class
320-149 Provisions that apply only in relation to the ordinary class


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