Taxation Laws Amendment Act (No. 1) 1999 (16 of 1999)

Schedule 9   Average calculated liabilities of life assurance companies

Income Tax Assessment Act 1936

6   Subsection 114(2)

Repeal the subsection, substitute:

(2) If:

(a) it is necessary to work out a life assurance company's calculated liabilities as at a particular time (the relevant time ); and

(b) no actuarial valuation of liabilities of the company as at the relevant time is made;

the calculated liabilities at that time are the amount worked out by using the formula:

Current value of assets * (Previous actuarial valuation of liabilities/Previous value of assets)

where:

current value of assets means the value of all the company's assets at the relevant time.

previous actuarial valuation of liabilities means the last actuarial valuation of liabilities of the company made before the relevant time.

previous value of assets means the value of all the company's assets when the last actuarial valuation of liabilities of the company before the relevant time was made.