Document ID: chunk:federal_register_of_legislation:C2010C00648:clause:1_33:p6
Version: federal_register_of_legislation:C2010C00648
Segment Type: clause
Provision Reference: sch 1 cl 33 (pt 6/7)
Character Range: 43297–45936

way of deducting a tax loss: see section 36‑15. For other ways of deducting a tax loss: see section 36‑25.

320‑143  Tax loss—ordinary class

Working out a tax loss of the ordinary class

 (1) A *life insurance company's *tax loss of the ordinary class is a tax loss worked out under this Act on the basis of only:
 (a) assessable income of the company that is not covered by subsection 320‑137(2); and
 (b) amounts (other than tax losses) that the company can deduct and are not covered by subsection 320‑137(4); and
 (c) *net exempt income of the company that is not attributable to *exempt income derived:
 (i) from the company's *virtual PST assets; and
 (ii) in relation to the period during which those assets were virtual PST assets.

Note: For the usual way of working out a tax loss: see section 36‑10. For other ways of working out a tax loss: see section 36‑25.

Deducting a tax loss of the ordinary class

 (2) A *life insurance company's *tax loss of the ordinary class can be deducted under this Act only from:
 (a) *net exempt income of the company that is not attributable to *exempt income derived:
 (i) from the company's *virtual PST assets; and
 (ii) in relation to the period during which those assets were virtual PST assets; and
 (b) assessable income of the company that is not covered by subsection 320‑137(2), reduced by amounts (other than tax losses) that the company can deduct and are not covered by subsection 320‑137(4).

Note: For the usual way of deducting a tax loss: see section 36‑15. For other ways of deducting a tax loss: see section 36‑25.

320‑149  Provisions that apply only in relation to the ordinary class

 (1) The provisions covered by subsection (2):
 (a) have effect as provided by section 320‑135 in relation to a *life insurance company's taxable income, or *tax loss, of the *ordinary class; but
 (b) have no effect in relation to the company's taxable income, or tax loss, of the *complying superannuation class.

 (2) This subsection covers these provisions:
 (a) section 36‑55;
 (b) Division 165 (except Subdivision 165‑CD).

Example 1: A life insurance company that has an amount of excess franking offsets will need to recalculate its tax loss of the ordinary class under section 36‑55. But its tax loss of the complying superannuation class is unaffected by that section.

Example 2: A life insurance company that fails to meet the relevant tests of Division 165 will need to recalculate the ordinary class of its taxable income and tax loss under Subdivision 165‑B. But the complying superannuation class of its taxable income and tax loss are unaffected by that Subdivision.