Income Tax Assessment Act 1997
SECTION 768-530 Active foreign business asset percentage - modifications for foreign life insurance companies and foreign general insurance companies 768-530(1)
If the foreign company is a * foreign life insurance company or a * foreign general insurance company, work out its * active foreign business asset percentage according to section 768-510 , but with the modifications set out in subsections (2) and (3).
768-530(2)
Treat a reference in the following provisions to a period as a reference to a * statutory accounting period of the foreign company:
(a) paragraphs 768-510(3)(b) and (c);
(b) section 768-525 .
768-530(3)
Apply the modifications set out in the following table.
Modifications for foreign life insurance companies and foreign general insurance companies | ||
Item | The result of this step: | is increased by the amount applicable under subsection (4) for this statutory accounting period: |
1 | step 2 of the method statement in subsection 768-520(1) | the most recent *statutory accounting period of the foreign company ending at or before the time mentioned in that step |
2 | step 1 of the method statement in subsection 768-525(3) | the *statutory accounting period mentioned in that step (as modified by subsection (2) of this section) |
3 | step 2 of the method statement in subsection 768-525(3) | the *statutory accounting period mentioned in that step (as modified by subsection (2) of this section) |
768-530(4)
The amount applicable under this subsection for a * statutory accounting period of the foreign company is worked out using the following formula:
Value of non-active
foreign business assets |
× |
Active insurance amount
Total insurance assets |
where:
active insurance amount
means:
(a) if the foreign company is a * foreign life insurance company - the untainted policy liabilities (within the meaning of subsection 446(2) of the Income Tax Assessment Act 1936 ) of the foreign company for the statutory accounting period; or
(b) if the foreign company is a * foreign general insurance company - the active general insurance amount worked out under subsection (5) for the statutory accounting period.
(a) if the foreign company is a * foreign life insurance company - the total assets (within the meaning of subsection 446(2) of the Income Tax Assessment Act 1936 ) of the foreign company for the statutory accounting period; or
(b) if the foreign company is a * foreign general insurance company - the total assets (within the meaning of subsection 446(4) of that Act) of the foreign company for the statutory accounting period.
value of non-active foreign business assets
means:
(a) for the purposes of item 1 of the table in subsection (3) - the difference between:
(i) the result of step 1 of the method statement in subsection 768-520(1) ; and
(ii) the result of step 2 of that method statement (apart from this section); or
(b) for the purposes of item 2 of the table in subsection (3) - the difference between:
(i) the result of step 1 of the method statement in subsection 768-525(2) ; and
(ii) the result of step 1 of the method statement in subsection 768-525(3) (apart from this section); or
(c) for the purposes of item 3 of the table in subsection (3) - the difference between:
(i) the result of step 2 of the method statement in subsection 768-525(2) ; and
(ii) the result of step 2 of the method statement in subsection 768-525(3) (apart from this section).
Active insurance amount for foreign general insurance company
768-530(5)
The active general insurance amount under this subsection for a *statutory accounting period of the foreign company is worked out using the following formula:
Total general insurance assets | − | Net assets | − | Tainted outstanding claims | + | Solvency amount |
where:
net assets
means the net assets (within the meaning of subsection
446(4)
of the
Income Tax Assessment Act 1936
) of the foreign company for the statutory accounting period.
solvency amount
means the solvency amount (within the meaning of subsection
446(4)
of the
Income Tax Assessment Act 1936
) of the foreign company for the statutory accounting period.
tainted outstanding claims
means the tainted outstanding claims (within the meaning of subsection
446(4)
of the
Income Tax Assessment Act 1936
) of the foreign company for the statutory accounting period.
total general insurance assets
means the total assets (within the meaning of subsection
446(4)
of the
Income Tax Assessment Act 1936
) of the foreign company for the statutory accounting period.
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