New International Tax Arrangements (Participation Exemption and Other Measures) Act 2004 (96 of 2004)

Schedule 3   Tainted services income

Part 1   Amendments

Income Tax Assessment Act 1936

4   Paragraph 448(1)(e)

Repeal the paragraph, substitute:

(e) income consisting of premiums in respect of reinsurance, if:

(i) the insurer whose risks are directly covered by the reinsurance was a Part X Australian resident at the time the policy was entered into; and

(ii) the policy was not entered into in connection with a business carried on by the insurer at that time at or through a permanent establishment of the insurer in a listed or unlisted country;

(f) income consisting of premiums in respect of reinsurance, if:

(i) the insurer whose risks are directly covered by the reinsurance was not a Part X Australian resident at the time the policy was entered into; and

(ii) the policy was entered into in connection with a business carried on by the insurer at that time at or through a permanent establishment of the insurer in Australia;

(g) income of the company covered by subsection (1A).