Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 768.530

             (1)  If the foreign company is a ^* foreign life insurance company or a ^* foreign general insurance company, work out its ^* active foreign business asset percentage according to section 768‑510, but with the modifications set out in subsections (2) and (3).

             (2)  Treat a reference in the following provisions to a period as a reference to a ^* statutory accounting period of the foreign company:

                     (a)  paragraphs 768‑510(3)(b) and (c);

                     (b)  section 768‑ 525.

             (3)  Apply the modifications set out in the following table.

             (4)  The amount applicable under this subsection for a ^* statutory accounting period of the foreign company is worked out using the following formula:

where:

"active insurance amount means" :

                     (a)  if the foreign company is a ^* foreign life insurance company--the untainted policy liabilities (within the meaning of subsection 446(2) of the Income Tax Assessment Act 1936 ) of the foreign company for the statutory accounting period; or

                     (b)  if the foreign company is a ^* foreign general insurance company--the active general insurance amount worked out under subsection (5) for the statutory accounting period.

"total insurance assets" means:

                     (a)  if the foreign company is a ^* foreign life insurance company--the total assets (within the meaning of subsection 446(2) of the Income Tax Assessment Act 1936 ) of the foreign company for the statutory accounting period; or

                     (b)  if the foreign company is a ^* foreign general insurance company--the total assets (within the meaning of subsection 446(4) of that Act) of the foreign company for the statutory accounting period.

"value of non-active foreign business assets" means:

                     (a)  for the purposes of item 1 of the table in subsection (3)--the difference between:

                              (i)  the result of step 1 of the method statement in subsection 768‑520(1); and

                             (ii)  the result of step 2 of that method statement (apart from this section); or

                     (b)  for the purposes of item 2 of the table in subsection (3)--the difference between:

                              (i)  the result of step 1 of the method statement in subsection 768‑525(2); and

                             (ii)  the result of step 1 of the method statement in subsection 768‑525(3) (apart from this section); or

                     (c)  for the purposes of item 3 of the table in subsection (3)--the difference between:

                              (i)  the result of step 2 of the method statement in subsection 768‑525(2); and

                             (ii)  the result of step 2 of the method statement in subsection 768‑525(3) (apart from this section).

Active insurance amount for foreign general insurance company

             (5)  The active general insurance amount under this subsection for a ^* statutory accounting period of the foreign company is worked out using the following formula:

where:

"net assets" means the net assets (within the meaning of subsection 446(4) of the Income Tax Assessment Act 1936 ) of the foreign company for the statutory accounting period.

"solvency amount" means the solvency amount (within the meaning of subsection 446(4) of the Income Tax Assessment Act 1936 ) of the foreign company for the statutory accounting period.

"tainted outstanding claims" means the tainted outstanding claims (within the meaning of subsection 446(4) of the Income Tax Assessment Act 1936 ) of the foreign company for the statutory accounting period.

"total general insurance assets" means the total assets (within the meaning of subsection 446(4) of the Income Tax Assessment Act 1936 ) of the foreign company for the statutory accounting period.