Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 713.710

    Sections   713 - 715 and 713 - 720 affect how sections   321 - 10, 321 - 15, 321 - 50 and 321 - 55 (the affected sections ) apply in relation to these values (the affected values ):

  (a)   the value of a * general insurance company's adjusted * liability for incurred claims under * general insurance policies that is worked out under section   321 - 20;

  (b)   the value of a general insurance company's adjusted * liability for remaining coverage under general insurance policies that is worked out under section   321 - 60.

Note 1:   Sections   321 - 10 and 321 - 15 both operate on the basis of a comparison of the value of a general insurance company's adjusted liability for incurred claims at the end of the current year with the value of that liability at the end of the previous income year, so that:

(a)   section   321 - 10 includes an amount in the company's assessable income for the current year if the value at the end of the current year is less than the value at the end of the previous income year; and

(b)   section   321 - 15 allows a deduction for the current year if the value at the end of the current year is more than the value at the end of the previous income year.

Note 2:   Sections   321 - 50 and 321 - 55 both operate on the basis of a comparison of the value of a general insurance company's adjusted liability for remaining coverage at the end of the current year with the value of that reserve at the end of the previous income year, so that:

(a)   section   321 - 50 includes an amount in the company's assessable income for the current year if the value at the end of the current year is less than the value at the end of the previous income year; and

(b)   section   321 - 55 allows a deduction for the current year if the value at the end of the current year is more than the value at the end of the previous income year.