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  

Taxable income and tax loss of life insurance companies

SECTION 320-137   Taxable income - complying superannuation class  

320-137(1)  


A *life insurance company ' s taxable income of the complying superannuation class is a taxable income worked out under this Act on the basis of only:


(a) assessable income of the company that is covered by subsection (2); and


(b) deductions of the company that are covered by subsection (4); and


(c) *tax losses of the company that are of the *complying superannuation class.

Note:

For the usual way of working out a taxable income: see subsection 4-15(1) . For other ways of working out a taxable income: see subsection 4-15(2) .

Relevant assessable income

320-137(2)  
This subsection covers the following assessable income of a *life insurance company:


(a) assessable income *derived by the company from the investment of its *complying superannuation assets in relation to the period during which those assets were complying superannuation assets;


(b) so much of the amount that is included in the company ' s assessable income because of paragraph 320-15(1)(a) as is equal to the total *transfer value of assets transferred in the income year by the company to a *complying superannuation asset pool under subsection 320-185(3) ;


(c) if an asset (other than money) is transferred by the company from a complying superannuation asset pool under subsection 320-180(1) or 320-195(2) or (3) - amounts that are included in the company ' s assessable income because of section 320-200 ;


(d) amounts that are included in the company ' s assessable income because of paragraph 320-15(1)(db) , (i) or (j);


(e) amounts that are included in the company ' s assessable income under subsection 115-280(4) ;


(f) subject to subsection (3), so much of the company ' s assessable income for the income year as is:


(i) the total amount credited during that year to the *RSAs provided by the company; less

(ii) the total amount debited during that year from the RSAs.
Amounts disregarded for RSAs

320-137(3)  
In working out the amount mentioned in paragraph (2)(f), disregard the following amounts:


(a) contributions credited to the *RSAs that would not be included in the company ' s assessable income under Subdivision 295-C if that Subdivision applied to the company;


(b) amounts debited from the RSAs that are benefits paid to, or in respect of, the holders of the RSAs;


(c) income tax debited from the RSAs;


(d) if an *annuity covered by subsection (3A) was paid from an RSA in respect of the whole of the income year, or the whole of the part of the income year in which the RSA existed, the total amount credited to the RSA during the income year;


(e) if an annuity covered by subsection (3A) was paid from an RSA in respect of a part, but not the whole, of the portion of the income year in which the RSA existed, so much of the total amount credited to the RSA during the income year as is equal to the amount worked out using the following formula:


Total amount credited to the *RSA during the income year × Number of days in the part of the income year in which the *annuity covered by subsection (3A) was paid
Number of days in the income year in which the RSA existed

320-137(3A)  


An *annuity is covered by this subsection if it is a *superannuation income stream that is in the *retirement phase. Relevant deductions

320-137(4)  
This subsection covers the following deductions of a *life insurance company:


(a) amounts that the company can deduct under section 320-55 ;


(b) amounts that the company can deduct (other than any *tax losses) in respect of the investment of the company ' s *complying superannuation assets in relation to the period during which those assets were complying superannuation assets;


(c) amounts that the company can deduct under section 320-87 because of subsection (1) or paragraph (3)(a) of that section;


(d) amounts that the company can deduct under subsection 115-280(1) .


(e) (Repealed by No 62 of 2011)


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