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

74   Reduction in deductions that are not exclusively related to producing assessable income

 

(1) Section 111C of the Principal Act is amended:
        

(a) by omitting from paragraph (1)(a) "51 or 113" and substituting "51, 111AC (other than subsection (3)), 111AD (other than subsection (4)) or 113";
        

(b) by omitting from subsection (2) all the words from and including "where:" to the end of the subsection;
        

(c) by adding at the end the following subsection:
        

"(4) In this section:

'Deduction' means the amount of the deduction concerned;

'Assessable income', in relation to a life assurance company includes:

(a) superannuation premiums to which section 111AC applies that are received by the company; and

(b) the investment component of relevant life assurance premiums to which section 111AD applies that are received by the company;

'Total income' means the total of all the amounts that would be assessable income of the company apart from any exempting provision.".

      

(2) The amendment made by paragraph (1)(a) applies in apportioning deductions in respect of a loss, outgoing or expenditure (including a deduction based on, or calculated by reference to, all or a portion of a loss, outgoing or expenditure) incurred on or after 1 January 1994.
        

      

(3) The amendments made by paragraphs (1)(b) and (c) apply in respect of premiums received on or after 1 January 1994.