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Taxation Determination

TD 92/169

Income tax: insurance: are all premiums received by a life assurance company in respect of deferred annuity policies 'superannuation premiums' for the purposes of section 111A of the Income Tax Assessment Act 1936 ?

  • Please note that the PDF version is the authorised version of this ruling.

FOI status:

may be releasedFOI number: I 1213412

This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953, is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).

1. No. Only premiums in respect of deferred annuity policies that are vested in the trustee of a superannuation fund, approved deposit fund or pooled superannuation trust can be 'superannuation premiums' for the purposes of section 111A of the. Premiums in respect of all other deferred annuity policies, including a 'RA policy' as defined in subsection 110 (1), are not 'superannuation premiums' for section 111A purposes.

2. The effect of the decision contained in paragraph one is that section 111A does not provide for expenses relating to premiums for deferred annuity policies which are not 'superannuation premiums' to be allowable deductions. Section 111A applies from the year of income in which 1 July 1988 occurs.

3. However, section 111AA generally applies to the relevant expenses incurred by a life assurance company on or after 1 January 1990. Consequently, this Determination has practical effect for expenditure incurred from the year of income in which 1 July 1988 occurs and until 31 December 1989 only.

Commissioner of Taxation
08/10/92

Previous Draft No: TD 92/D119

References

ATO references:
NO Insurance Industry Cell

ISSN 1038 - 3158

Subject References:
life assurance companies,
deferred annuity policies,
superannuation premiums,
RA policies.

Legislative References:
ITAA 110 ( 1 );
ITAA 111A;
ITAA 111AA


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