Part D
Deductions
Life insurance business expenditure
DR 4Life insurers' claims
For a life insurer's life insurance policies, the life insurer is denied a deduction relating to the life insurer's outstanding claims or for a claim's expenditure or loss for an income year, except as provided by—
- section EY 24 (Outstanding claims reserving amount: non-participation policies not annuities):
- subsection (2).
The life insurer is allowed a deduction as provided by section EY 20 (Shareholder base allowable deductions: non-participation policies) for the amount of expenditure or loss relating to the life risk component of a claim paid for the income year under a life insurance policy that is not an annuity and not a profit participation policy.
This section supplements the general permission. The general limitations still apply, except that the capital limitation does not apply for a life insurer and the life risk components of claims under life insurance policies that are not annuities and not profit participation policies and have been transferred to the life insurer.
Notes
- Section DR 4: added, on , by section 94(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
- Section DR 4 heading: replaced (with effect on 1 July 2010), on , by section 39(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
- Section DR 4(2): replaced, on , by section 39(2) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
- Section DR 4(3): amended (with effect on 1 July 2010), on , by section 39(3) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
- Section DR 4 list of defined terms capital limitation: inserted (with effect on 1 July 2010), on , by section 39(4) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
- Section DR 4 list of defined terms life risk component: inserted (with effect on 1 July 2010), on , by section 39(4) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
- Section DR 4 list of defined terms profit participation policy: inserted (with effect on 1 July 2010), on , by section 39(4) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).