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ATO Interpretative Decision

ATO ID 2002/314 (Withdrawn)

	This ATO ID has been withdrawn as the relevant provisions have been repealed and replaced with retrospective effect.
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CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision. This ATOID provides you with the following level of protection: If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Are amounts of ordinary income and statutory income derived from segregated exempt assets of a life company which are exempt from tax under paragraph 320-35(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) excluded exempt income for the purposes of subsection 36-20(3) of the ITAA 1997?

Decision

No, amounts of ordinary income and statutory income derived from segregated exempt assets of a life insurance company and which are exempt from tax under paragraph 320-35(1)(b) of the ITAA 1997 are not excluded exempt income for the purposes of subsection 36-20(3) of the ITAA 1997.

Facts

A life insurance company derives ordinary and statutory income from segregated exempt assets which is exempt from tax under paragraph 320-35(1)(b) of the ITAA 1997.

Reasons for Decision

Subsection 36-20(3) of the ITAA 1997 defines excluded exempt income to include amounts exempted under a number of specific provisions of the Income Tax Assessment Act 1936 (ITAA 1936). Subsection 36-20(3) of the ITAA 1997 does not specify that the amount which is exempt under paragraph 320-35(1)(b) of the ITAA 1997 is excluded exempt income.

Note: this issue has been referred to Government.

Date of decision: 5 July 2001

Year of income:

Year ended 30 June 2001 and subsequent income years.

Legislative References:
Income Tax Assessment Act 1997
   subsection 36-20(3)
   paragraph 320-35(1)(b)

Related ATO Interpretative Decisions
ATO ID 2002/356 ATO ID 2002/357 ATO ID 2002/358

Keywords
Life assurance
Life assurance income

Date of publication: 28 March 2002

ISSN: 1445-2782