Section DR 4 — Income Tax Act 2007: Life insurers' claims reserves

DR 4 Life insurers' claims reserves No deduction on account of claims (1) 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–– (a) section EY 24 (Outstanding claims reserving amount: non-participation policies not annuities): (b) subsection (2). Deduction for payments of current claims (2) The life insurer is allowed a deduction for the amount of expenditure or loss of a claim paid under a life insurance policy for the income year. Link with subpart DA (3) This section supplements the general permission. The general limitations still apply. Defined in this Act: claim , deduction , general limitation , general permission , life insurance policy , life insurer Section DR 4: added, on 1 July 2010, by section 94(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).