Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) These amounts * derived by a * life insurance company are not assessable income and are not * exempt income:
(a) amounts of ordinary income and statutory income derived from * segregated exempt assets, being income that relates to the period during which the assets were segregated exempt assets;
(b) amounts of ordinary income and statutory income derived from the * disposal of units in a * pooled superannuation trust;
(c) if an * Australian/overseas fund or an * overseas fund established by the company derived foreign establishment amounts--the foreign resident proportion of the foreign establishment amounts;
(d) if the company is a * friendly society:
(i) amounts derived before 1 July 2001 that are exempt from income tax under section 50 - 1; and
(ii) amounts derived on or after 1 July 2001 but before 1 January 2003, that are attributable to * income bonds, * funeral policies or * sickness policies; and
(iii) amounts derived on or after 1 July 2001 but before 1 January 2003, that are attributable to * scholarship plans and would have been exempt from income tax under section 50 - 1 if they had been received before 1 July 2001; and
(iv) amounts derived on or after 1 January 2003 that are attributable to income bonds, funeral policies or * sickness policies, that were issued before 1 January 2003; and
(v) amounts derived on or after 1 January 2003 that are attributable to scholarship plans issued before 1 January 2003 and that would have been exempt from income tax if they had been received before 1 July 2001.
Note: The effect of this section is modified when the life insurance business of a life insurance company is transferred to another life insurance company: see section 320 - 325.
(1A) For the purposes of paragraph (1)(c), foreign establishment amounts for the * life insurance company means the total amount of assessable income that was * derived in the income year:
(a) in the course of the carrying on by the company of a business in a foreign country at or through a * permanent establishment of the company in that country; and
(b) from sources in that or any other foreign country; and
(i) are attributable to the permanent establishment; and
(ii) are held to meet the liabilities under the * life insurance policies issued by the company at or through the permanent establishment.
(2) For the purposes of paragraph (1)(c), the foreign resident proportion of the * foreign establishment amounts is the amount worked out using the formula:
where:
"all foreign establishment policy liabilities" means the average value for the income year (as calculated by an * actuary) of the policy liabilities (as defined in the * Valuation Standard) for all * life insurance policies that:
(a) were included in the class of * life insurance business to which the company's * Australian/overseas fund or * overseas fund relates; and
(b) were issued by the company at or through the * permanent establishment to which the foreign establishment amounts relate.
"foreign resident foreign establishment policy liabilities" means the average value for the income year (as calculated by an * actuary) of the policy liabilities (as defined in the * Valuation Standard) for all * life insurance policies that:
(a) are * foreign resident life insurance policies; and
(b) were issued by the company at or through the *
permanent establishment to which the foreign establishment amounts relate.