Taxation Laws Amendment Act 1994 (56 of 1994)

Part 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 10   Life assurance companies and registered organizations

71   Deductions to be allowable for expenditure incurred in gaining the investment component of certain premiums

 

(1) Section 111AA of the Principal Act is amended by inserting after subsection (1) the following subsection:
        

"(1A) The reference in subsection (1) to premiums received in respect of life assurance policies does not include a reference to premiums that are received on or after 1 January 1990 and before the end of the 1989-90 year of income and:

(a) are so received in respect of a life assurance policy issued by a life assurance company in the course of a business carried on by it at or through a permanent establishment of the company in a foreign country; or

(b) are exempt from tax under paragraph 23(r).".

      

(2) Section 111AA of the Principal Act is amended:
        

(a) by omitting from paragraph (1)(c) "amounts; or" and substituting "amounts.";
        

(b) by omitting paragraphs (1)(d) and (e);
        

(c) by inserting after subsection (1A) the following subsection:
        

"(1B) For the purposes of the application of this section to assessments in respect of income of the 1990-91 year of income or to assessments in respect of income of later years of income, the reference in subsection (1) to premiums received in respect of life assurance policies does not include a reference to premiums that are:

(a) received in respect of eligible non-resident policies; or

(b) exempt from tax under section 23AH; or

(c) exempt from tax under paragraph 23(r).".

      

(3) Section 111AA of the Principal Act is amended by adding at the end the following subsection:
        

"(4) This section does not apply, and is taken not to have applied, to premiums received on or after 1 January 1994.".

      

(4) If, in relation to a particular life assurance company:
        

(a) as a result of an amendment made by this section, the premiums to which section 111AA of the Principal Act as amended by this section applies in respect of a year of income differ from the premiums to which that section would have applied in respect of that year of income if the amendment had not been made; and
        

(b) the company obtained a certificate under section 111AA of the Principal Act in relation to that year of income;
        

section 111AA of the Principal Act as amended by this section is taken not to have applied to premiums received by the company in that year of income unless:

(c) after the commencement of this subsection the company furnishes an amended return in respect of that year of income; and
        

(d) after that commencement but before the amended return is furnished (or within such further period as the Commissioner allows) the company obtains a further certificate under section 111AA of the Principal Act as amended by this section with respect to the operation of that section in relation to that year of income.