Taxation Determination

TD 94/32W

Income tax: capital gains: where no amount of money or other consideration is given for the acquisition of any of the rights, or an interest in any of the rights, under a policy of life assurance, and the person acquiring such rights is not the original beneficial owner, will subsection 160ZH(9) of the Income Tax Assessment Act 1936 deem market value consideration in subsection 160ZZI(3)?

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FOI status:

may be releasedFOI number: I 1217263

Notice of Withdrawal

Taxation Determination TD 94/32 is withdrawn with effect from today.

1. TD 94/32 addresses the question of whether the transfer of any rights, or an interest in any rights, under a life insurance policy to a person other than the original beneficial owner for no amount of money or other consideration will invoke the operation of subsection 160ZH(9) of the Income Tax Assessment Act 1936 (ITAA 1936), which deems consideration to be the market value, for the purposes of subsection 160ZZI(3) of the ITAA 1936.

2. The question in TD 94/32 is now addressed in Example 2 of subsection 118-300(1) of the Income Tax Assessment Act 1997.

3. Accordingly, TD 94/32 is no longer current and is therefore withdrawn.

Commissioner of Taxation
25 January 2017

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Previously issued as Draft TD 93/D286

References

ATO references:
NO 1-9N72KXS

ISSN: 2205-6211

Related Rulings/Determinations:

TD 94/31
TD 94/33
TD 94/34

Subject References:
exemption
life assurance policy
market value
original beneficial owner

Legislative References:
ITAA 160ZH(9)
ITAA 160ZZI
ITAA 160ZZI(2)
ITAA 160ZZI(3)

TD 94/32W history
  Date: Version: Change:
  21 April 1994 Original ruling  
  29 November 2006 Original ruling + note Repeal provision note
You are here 25 January 2017 Withdrawn  

Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).