Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:2_84:p5
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 2 cl 84 (pt 5/26)
Character Range: 142381–145007

discharged out of its *virtual PST assets or its *segregated exempt assets.

 (4) The specified management fees for the income year in respect of *life insurance policies to which subsection (3) does not apply are so much of the sum of the amounts applicable in respect of the policies under subsections (5), (6) and (7) (the applicable amounts) as does not exceed any fees or charges made by the *life insurance company that the company was entitled to make under the terms of the policies as applying immediately before 1 July 2000.

 (5) The applicable amount for *virtual PST life insurance policies where the company's liabilities under the policies are to be discharged out of its *virtual PST assets is:
 (a) the sum of the amounts transferred from the *virtual PST in the income year under subsection 320‑180(1) or 320‑195(3);
less:
 (b) so much of the sum of:
 (i) any amounts transferred to the virtual PST in the income year under subsection 320‑180(2) or 320‑185(1); and
 (ii) any of the amounts referred to in paragraph (a) that related to the company's liability to pay amounts on the death or disability of a person;
  as does not exceed the amount referred to in paragraph (a).

 (6) The applicable amount for *exempt life insurance policies where the company's liabilities under the policies are to be discharged out of its *segregated exempt assets is:
 (a) the total amount transferred from the segregated exempt assets in the income year under subsection 320‑235(1) or 320‑250(2);
less:
 (b) so much of the total amount transferred to the segregated exempt assets in the income year under subsection 320‑235(2) or 320‑240(1) as does not exceed the amount referred to in paragraph (a).

 (7) The applicable amount for other policies is:
 (a) the sum of the *life insurance premiums received in respect of the policies in the income year;
less:
 (b) so much of the total of:
 (i) the amounts that the company can deduct under section 320‑75; and
 (ii) the *risk components of claims paid under those policies in the income year;
  as does not exceed the amount referred to in paragraph (a).

 (8) An amount that is exempt from income tax under this section is taken to be assessable income of the *life insurance company for the purposes of section 8‑1.

320‑45  Tax treatment of gains or losses from CGT events in relation to virtual PST assets

  If a *CGT event happens in respect of a *CGT 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