Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:2_84:p6
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 2 cl 84 (pt 6/26)
Character Range: 144794–147780

asset that is a *virtual PST asset of a *life insurance company, Division 10 of Part IX of the Income Tax Assessment Act 1936 applies for the purpose of working out the amount of any *capital gain or *capital loss that arises from the event.

Subdivision 320‑C—Deductions and capital losses

Guide to Subdivision 320‑C

320‑50  What this Subdivision is about

      This Subdivision specifies particular deductions that are available to a life insurance company, specifies particular amounts that a life insurance company cannot deduct and contains provisions relating to a life insurance company's capital losses.

Table of sections

Operative provisions

320‑55 Deduction for life insurance premiums where liabilities under life insurance policies are to be discharged from virtual PST assets
320‑60 Deduction for life insurance premiums where liabilities under life insurance policies are to be discharged from segregated exempt assets
320‑65 Deduction for life insurance premiums in respect of life insurance policies that provide for participating or discretionary benefits
320‑70 No deduction for life insurance premiums in respect of certain life insurance policies payable only on death or disability
320‑75 Deduction in respect of other life insurance policies
320‑80 Deduction for certain claims paid under life insurance policies
320‑85 Deduction for increase in value of liabilities under net risk components of life insurance policies
320‑90 Deduction where asset transferred from virtual PST assets to segregated exempt assets and subsequently disposed of
320‑95 Deduction where asset transferred from virtual PST assets to segregated exempt assets and subsequently transferred
320‑100 Deduction for life insurance premiums paid under contracts of reinsurance
320‑105 Deduction for assets transferred to segregated exempt assets
320‑110 Deduction for interest credited to income bonds
320‑115 No deduction for amounts credited to RSAs
320‑120 Capital losses from assets other than virtual PST assets or segregated exempt assets
320‑125 Capital losses from virtual PST assets

[This is the end of the Guide]

Operative provisions

320‑55  Deduction for life insurance premiums where liabilities under life insurance policies are to be discharged from virtual PST assets

 (1) This section applies to a *life insurance company in respect of *life insurance policies where the company's liabilities under the policies are to be discharged out of *virtual PST assets.

 (2) The company can deduct:
 (a) the amounts of the *life insurance premiums received in respect of the policies that are transferred to its *virtual PST assets in the income year;
less:
 (b) so much of those amounts as relate to the company's liability to pay amounts on the death or disability of a person.

 (3) The amount of a *life insurance premium that relates to the company's liability mentioned in paragraph (2)(b) is:
 (a) if the *life insurance policy states that the whole or a specified