INCOME TAX ASSESSMENT ACT 1997
Work out a *life insurance company ' s income tax for an income year under section 4-10 as follows:
(a) apply steps 1 and 2 of the method statement in subsection 4-10(3) to work out separately the amount that would be the company ' s basic income tax liability for its taxable income of each *class for that year;
(b) treat the sum of these amounts as the company ' s basic income tax liability for that year and apply step 4 of the method statement to subtract its *tax offsets from that sum. 320-134(2)
For the purposes of this Act:
(a) the income tax worked out in accordance with subsection (1) is taken to be the company ' s income tax on its taxable income for the income year; and
(b) except as provided by subsection (1) of this section and sections 320-135 to 320-149 , the company ' s taxable income for that year is taken to be equal to the sum of the company ' s taxable incomes of the 2 *classes for that year.
This means that there is only one assessment in respect of the company ' s taxable income for the income year and that the income tax constitutes only one debt to the Commonwealth.Working out the income tax on certain assumptions 320-134(3)
Subsection (1) also has effect in relation to working out an amount that would be the company ' s income tax if certain assumptions were made. It has that effect in the same way as it has effect in relation to working out the company ' s income tax under section 4-10 (except in regard to those assumptions).
This means, for example, subsection (1) also has effect in relation to working out the amount of a life insurance company ' s income tax on the basis of the tax offset priority rules in Division 63 .