Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991 - SECT 39

39. After section 160APV of the Principal Act the following sections are
inserted: Life assurance companies - credit reducing section 160APYA debit

"160APVA. (1) Where, on a particular day, a franking debit of a life assurance
company arises under section 160APYA in relation to an initial payment of tax
made by the company under section 221AP in respect of a year of income (in
this section called the `current year of income') that was applied by the
Commissioner, there arises on that day a franking credit of the company worked
out under subsection (2) of this section.

"(2) The amount of the franking credit is equal to the adjusted amount in
relation to the amount calculated for the current year of income using the
formula:
                             Preceding         Non-fund component

              Initial          year's     -   of preceding year's

   0.8  X     payment   X   company tax           company tax

applied
Preceding year's company tax where: `Initial payment applied' means the amount
of the initial payment of tax that was so applied; `Preceding year's company
tax' means the company tax assessed to the company for the year of income (in
this subsection called the `preceding year of income') that immediately
preceded the current year of income; `Non-fund component of preceding year's
company tax' means so much of the company tax assessed to the company for the
preceding year of income as is attributable to the non-fund component. Life
assurance companies - credit reducing section 160APYAA debit

"160APVB. (1) Where, on a particular day, a franking debit of a life assurance
company arises under section 160APYAA in relation to a further payment on
account of tax in respect of a year of income (in this section called the
`current year of income') that was applied by the Commissioner, there arises
on that day a franking credit of the company worked out under subsection (2)
of this section.

"(2) The amount of the franking credit is equal to the adjusted amount in
relation to the amount calculated for the current year of income using the
formula:
                           Preceding                Non-fund component

           Further           year's        -        of preceding year's

  0.8  X   payment   X    company tax                   company tax

applied
Preceding year's company tax where: `Further payment applied' means the amount
of the further payment that was so applied; `Preceding year's company tax'
means the company tax assessed to the company for the year of income (in this
subsection called the `preceding year of income') that immediately preceded
the current year of income; `Non-fund component of preceding year's company
tax' means so much of the company tax assessed to the company for the
preceding year of income as is attributable to the non-fund component. Life
assurance companies - credit reducing section 160APYB debit

"160APVC. (1) Where, on a particular day, a franking debit of a life assurance
company arises under section 160APYB in relation to an amount received as a
refund in relation to a year of income (in this section called the `current
year of income'), there arises on that day a franking credit of the company
worked out under subsection (2) of this section.

"(2) The amount of the franking credit is equal to the adjusted amount in
relation to the amount calculated for the current year of income using the
formula:
                            Preceding               Non-fund component

           Refunded           year's       -        of preceding year's

   0.8  X   amount     X    company tax                company tax

Preceding year's company tax where: `Refunded amount' means the amount
received as a refund; `Preceding year's company tax' means the company tax
assessed to the company for the year of income (in this subsection called the
`preceding year of income') that immediately preceded the current year of
income; `Non-fund component of preceding year's company tax' means so much of
the company tax assessed to the company for the preceding year of income as is
attributable to the non-fund component. Life assurance companies - credit
reducing section 160APZ debit

"160APVD. Where, on a particular day, a franking debit of a life assurance
company arises under section 160APZ in relation to a reduction in the company
tax of the company for a year of income, there arises on that day a franking
credit of the company equal to the adjusted amount in relation to the amount
calculated using the formula:
       0.8    X     Overall              Non-fund

                    reduction      -     component

of reduction where: `Overall reduction' means the amount of the reduction;
`Non-fund component of reduction' means so much of the amount of the reduction
as is attributable to the non-fund component. Life assurance companies -
credit reducing section 160AQA debit

"160APVE. Where, on a particular day, a franking debit of a life assurance
company arises under section 160AQA in relation to a foreign tax credit, or an
increase in a foreign tax credit, allowable in relation to a year of income,
there arises on that day a franking credit of the company equal to the
adjusted amount in relation to the amount calculated using the formula:
           Original/increased             Non-fund component

  0.8  X   foreign tax credit     -     of original/increased

foreign tax credit where: `Original/increased foreign tax credit' means the
amount of the foreign tax credit or of the increase, as the case requires;
`Non-fund component of original/increased foreign tax credit' means so much of
the foreign tax credit or of the increase, as the case requires, as is
attributable to the non-fund component.".