Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 320.134

Income tax of a life insurance company

Working out the income tax

  (1)   Work out a * life insurance company's income tax for an income year under section   4 - 10 as follows:

  (a)   apply steps 1 and 2 of the method statement in subsection   4 - 10(3) to work out separately the amount that would be the company's basic income tax liability for its taxable income of each * class for that year;

  (b)   treat the sum of these amounts as the company's basic income tax liability for that year and apply step 4 of the method statement to subtract its * tax offsets from that sum.

  (2)   For the purposes of this Act:

  (a)   the income tax worked out in accordance with subsection   (1) is taken to be the company's income tax on its taxable income for the income year; and

  (b)   except as provided by subsection   (1) of this section and sections   320 - 135 to 320 - 149, the company's taxable income for that year is taken to be equal to the sum of the company's taxable incomes of the 2 * classes for that year.

Note:   This means that there is only one assessment in respect of the company's taxable income for the income year and that the income tax constitutes only one debt to the Commonwealth.

Working out the income tax on certain assumptions

  (3)   Subsection   (1) also has effect in relation to working out an amount that would be the company's income tax if certain assumptions were made. It has that effect in the same way as it has effect in relation to working out the company's income tax under section   4 - 10 (except in regard to those assumptions).

Note:   This means, for example, subsection   (1) also has effect in relation to working out the amount of a life insurance company's income tax on the basis of the tax offset priority rules in Division   63.


AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback