Document ID: chunk:federal_register_of_legislation:C2025C00014:section:26ah:p3
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 26AH (pt 3/5)
Character Range: 216968–219514

or
 (ii) segregated exempt assets within the meaning of that Act; or
 (c) except where the policy was effected, purchased or taken on assignment with a view to it being forfeited, surrendered or otherwise terminated, or to it maturing, within 10 years—the amount was received by the taxpayer by reason of the forfeiture, surrender or other termination of the whole or a part of the policy in circumstances arising out of serious financial difficulties of the taxpayer.
 (8) Where:
 (a) subsection (6) would, but for this subsection, apply to an amount (in this subsection referred to as the relevant amount) received by a taxpayer by reason of the forfeiture, surrender or other termination of the whole or a part of an eligible policy; and
 (b) the Commissioner, having regard to:
 (i) the total amount of premiums paid under the eligible policy;
 (ii) the total amounts received by the taxpayer or by any other person under the eligible policy and the total amounts of bonuses included in the amounts so received;
 (iii) the amount of the surrender value of the eligible policy at the time when the forfeiture, surrender or other termination occurred; and
 (iv) such other matters as the Commissioner considers relevant, is of the opinion that it would be unreasonable for subsection (6) to apply to the relevant amount or to a part of the relevant amount;
subsection (6) does not apply to the relevant amount, or to that part of the relevant amount, as the case may be.
 (9) Where:
 (a) otherwise than as or by way of a bonus, a taxpayer receives an amount (in this subsection referred to as the relevant amount) under an eligible policy; and
 (b) the Commissioner is of the opinion that the relevant amount or a part of the relevant amount represents the whole or part of:
 (i) a bonus that has accrued or has been declared in respect of the policy; or
 (ii) a bonus that can reasonably be expected to accrue in respect of the policy;
the relevant amount or the part of the relevant amount, as the case may be, shall, for the purposes of subsection (6), be deemed to have been received by the taxpayer under the policy as or by way of a bonus.
 (10) Where:
 (a) subsection (9) applies by reason that the Commissioner has formed an opinion under paragraph (9)(b) that the whole or a part of an amount received by a taxpayer represents the whole or a part of a bonus; and
 (b) the taxpayer subsequently receives an amount (in this subsection referred to as the actual bonus), being the whole or a part of the bonus, or of the part of the bonus,