INCOME TAX ASSESSMENT ACT 1936

PART III - LIABILITY TO TAXATION  

Division 9AA - Demutualisation of insurance companies and affiliates  

Subdivision B - Key concepts and related definitions  

SECTION 121AB   INSURANCE COMPANY DEFINITIONS  

121AB(1)   [Mutual insurance company]  

A mutual insurance company is an insurance company:


(a) whose profits are divisible only among its policyholders; or


(b) that satisfies all of the following conditions:


(i) it is limited by guarantee;

(ii) it did not divide its profits among its members during the 10 years ending on 9 May 1995;

(iii) on a winding-up, its profits are not divisible among its members; or


(c) that satisfies all of the following conditions:


(i) at 7.30 pm, by legal time in the Australian Capital Territory, on 9 May 1995, it was a friendly society (within the meaning of this Act as in force at that time);

(ii) it was an insurance company on 1 July 1999;

(iii) it does not have capital divided into shares held by its members.

121AB(2)   [Insurance company]  

An insurance company is a life insurance company or a general insurance company.

121AB(3)   [Life insurance company]  

A life insurance company is a company registered under section 21 of the Life Insurance Act 1995 .

121AB(4)   [General insurance company]  

A general insurance company is a company whose sole or principal business is insurance business within the meaning of subsection 3(1) of the Insurance Act 1973 , but does not include a life insurance company.


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