Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p56
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 56/79)
Character Range: 4980302–4983084

proportion of the foreign establishment amounts;
 (d) if the company is a *friendly society:
 (i) amounts derived before 1 July 2001 that are exempt from income tax under section 50‑1; and
 (ii) amounts derived on or after 1 July 2001 but before 1 January 2003, that are attributable to *income bonds, *funeral policies or *sickness policies; and
 (iii) amounts derived on or after 1 July 2001 but before 1 January 2003, that are attributable to *scholarship plans and would have been exempt from income tax under section 50‑1 if they had been received before 1 July 2001; and
 (iv) amounts derived on or after 1 January 2003 that are attributable to income bonds, funeral policies or *sickness policies, that were issued before 1 January 2003; and
 (v) amounts derived on or after 1 January 2003 that are attributable to scholarship plans issued before 1 January 2003 and that would have been exempt from income tax if they had been received before 1 July 2001.
Note: The effect of this section is modified when the life insurance business of a life insurance company is transferred to another life insurance company: see section 320‑325.
 (1A) For the purposes of paragraph (1)(c), foreign establishment amounts for the *life insurance company means the total amount of assessable income that was *derived in the income year:
 (a) in the course of the carrying on by the company of a business in a foreign country at or through a *permanent establishment of the company in that country; and
 (b) from sources in that or any other foreign country; and
 (c) from assets that:
 (i) are attributable to the permanent establishment; and
 (ii) are held to meet the liabilities under the *life insurance policies issued by the company at or through the permanent establishment.
 (2) For the purposes of paragraph (1)(c), the foreign resident proportion of the *foreign establishment amounts is the amount worked out using the formula:
where:
all foreign establishment policy liabilities means the average value for the income year (as calculated by an *actuary) of the policy liabilities (as defined in the *Valuation Standard) for all *life insurance policies that:
 (a) were included in the class of *life insurance business to which the company's *Australian/overseas fund or *overseas fund relates; and
 (b) were issued by the company at or through the *permanent establishment to which the foreign establishment amounts relate.
foreign resident foreign establishment policy liabilities means the average value for the income year (as calculated by an *actuary) of the policy liabilities (as defined in the *Valuation Standard) for all *life insurance policies that:
 (a) are *foreign resident life insurance policies; and
 (b) were issued by the company at or through the *permanent