Commonwealth Numbered Regulations

1994 No. 174 INCOME TAX REGULATIONS (AMENDMENT) - REG 3

3.1 After regulation 124, insert in Division 3 of Part 7:

Variation of amount of notional tax of life assurance companies

"124A.(1) This regulation applies to a life assurance company whose 1993-94
year of income ends on or after 30 June 1994.



"(2) For the purposes of subsection 221AZB (4) of the Act, the amount of
notional tax of the life assurance company in respect of the 1993-94 year of
income is the sum of the amounts calculated under subregulation (3) for each
component of the company's taxable income as identified under section 116CJ of
the Act.



"(3) The amount of notional tax of the life assurance company in respect of
the 1993-94 year of income for a component of taxable income is calculated
using the formula:
ATC x R (93-94)
R (92-93) where: ATC is an amount equal to the income tax assessed in respect
of that component of taxable income of the life assurance company for the
1992-93 year of income; and R (93-94) is the rate of tax for that component of
taxable income for the 1993-94 year of income; and R (92-93) is the rate of
tax for that component of taxable income for the 1992-93 year of income.



"(4) For the purposes of subsection 221AZB (4) of the Act, the prescribed date
is 1 January 1993.".