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COMMONWEALTHAct
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s 320-85

Deduction for increase in value of liabilities under risk components of life insurance policies

In force
Chapter 3Specialist liability rules
Part 3-35Insurance business
Division 320Life insurance companies
Subdivision 320-CDeductions and capital losses

320-85 Deduction for increase in value of liabilities under risk components of life insurance policies

(1)

In working out the amount that a life insurance company can deduct, in respect of life insurance policies that are disability policies (other than continuous disability policies) under subsection 320‑85(1) of the Income Tax Assessment Act 1997 for the income year in which 1 July 2000 occurs, the value of the company’s liabilities under the net risk components of the policies at the end of the previous income year is taken to be the value of the liabilities as at the end of 30 June 2000 relating to those policies that was used by the company for the purposes of its return of income.

(2)

In working out the amount that a life insurance company can deduct, in respect of life insurance policies (other than policies to which subsection (1) applies) under subsection 320‑85(1) of the Income Tax Assessment Act 1997 for the income year in which 1 July 2000 occurs, the value of the company’s liabilities under the net risk components of the policies at the end of the previous income year is taken to be the value of the company’s liabilities as at the end of 30 June 2000 under the net risk components relating to those policies as calculated under subsection 320‑85(4) of that Act.

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Section 320-85 — Deduction for increase in value of liabilities under risk components of life insurance policies — Income Tax (Transitional Provisions) Act 1997 (Commonwealth) — Barrister AI