Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 320.5

             (1)  The object of this Division is to provide for the taxation of * life insurance companies in a broadly comparable way to other entities that * derive similar kinds of income.

             (2)  To achieve this object, the Division:

                     (a)  identifies certain amounts that are included in the assessable income, or are * exempt income or * non-assessable non-exempt income, of a * life insurance company; and

                     (b)  identifies certain amounts that a life insurance company can deduct; and

                     (c)  enables a life insurance company to have taxable incomes and * tax losses of the following classes for the purposes of working out its income tax for an income year:

                              (i)  the * complying superannuation/FHSA class;

                             (ii)  the * ordinary class; and

                     (d)  contains other provisions necessary to enable the income tax on the taxable income of a life insurance company to be worked out.

Note:          Section 320-5 of the Income Tax (Transitional Provisions) Act 1997 provides that the tax consequences of certain transfers of assets of a life insurance company that is a friendly society to a complying superannuation fund are to be disregarded.

Guide to Subdivision 320-B