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  

General rules

SECTION 320-134   Income tax of a life insurance company  

Working out the income tax

320-134(1)  
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.

Note:

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).

Note:

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 .


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