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Legal database

Draft Taxation Determination

TD 93/D104

Income tax: does the transfer of an asset between the statutory funds of a life insurance company constitute a disposal for income tax purposes?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 94/43.

FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) present the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

1. No. An internal transfer of an asset between a life company's statutory funds does not result in taxation implications for the company because there is no disposal or sale for income tax purposes. The life company remains the beneficial owner of the asset both before and after the transfer, as the statutory fund is not a separate entity.

2. It is only upon disposal by a life company to an external party that any profit or loss is realised for taxation purposes.

3. This determination is applicable to both gains assessable under subsection 25(1) and Part IIIA of the Income Tax Assessment Act 1936.

Commissioner of Taxation
29 April 1993

References


BO Insurance Industry Cell

ISSN 1038 - 8982

Subject References:
life insurance
asset
CGT asset
transfer of assets
disposal of assets

Legislative References:
ITAA 25(1)
ITAA Part IIIA


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