Section CR 4 — Income Tax Act 2007: Income for general insurance outstanding claims reserve

CR 4 Income for general insurance outstanding claims reserve What this section applies to (1) This section applies for— (a) an insurer who–– (i) uses IFRS 4, Appendix D for general insurance contracts: (ii) is a life insurer who has general insurance contracts; and (b) general insurance contracts, excluding contracts having premiums to which section CR 3 (Income of non-resident general insurer) applies. Formula for insurer's OCR income (2) For an income year (the current year ), an insurer has income of the amount by which zero is less than the amount calculated using the formula— opening outstanding claims reserve − closing outstanding claims reserve. Definition of items in formula (3) In the formula,— (a) opening outstanding claims reserve is— (i) the amount of the insurer’s closing outstanding claims reserve for the income year before the current year (the prior year ); or (ii) the amount of the insurer's reserve for outstanding claims liability, calculated at the end of the prior year, using the basis the insurer used for tax purposes in that prior year, if the current year is the first year that this section applies to the insurer: (b) closing outstanding claims reserve is the amount of the insurer’s outstanding claims reserve, calculated at the end of the current year. Defined in this Act: amount , IFRS 4 , income , income year , insurer , life insurer , outstanding claims reserve , premium Section CR 4: added (with effect on 1 April 2008), on 6 October 2009, by section 34(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section CR 4 list of defined terms general insurance contract : repealed (with effect on 1 April 2008), on 7 September 2010, by section 11(b) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section CR 4 list of defined terms premium : added (with effect on 1 April 2008), on 7 September 2010, by section 11(a) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).