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CR 1: Policyholder base income of life insurer
or “Income from insurance policies that life insurers must include in their taxes”
You could also call this:

“Life insurer must include certain funds as shareholder income”

You need to know about a rule for life insurance companies. This rule is about something called “shareholder base income”. Here’s what it means in simple terms:

If a life insurance company has some money that counts as shareholder base income in a year, but this money isn’t counted as income in other parts of the tax law, it still needs to be treated as income. The life insurance company must include this money as part of their income for that year.

This rule makes sure that certain types of money a life insurance company gets are still counted as income, even if they might not be covered by other income rules.

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Next up: CR 3: Income of non-resident general insurer

or “How premiums paid to overseas insurers are taxed in New Zealand”
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Part C Income
Income from insurance

CR 2Shareholder base income of life insurer

  1. If, but for this section, a life insurer has an amount of shareholder base income for an income year, and that amount is not income under this Part, the amount is income of the life insurer for the income year.

Notes
  • Section CR 2: substituted, on , by section 33(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).