Section DZ 2 — Income Tax Act 2007: Life insurers acquiring property before 1 April 1988

DZ 2 Life insurers acquiring property before 1 April 1988 When this section applies (1) This section applies when— (a) a life insurer started carrying on the business of providing life insurance on or before the last day of the 1988–89 income year; and (b) on the last day of the 1987–88 income year the life insurer’s Life Insurance Fund covered some or all of the following matters: (i) superannuation policies; and (ii) pre-1983 mortgage repayment insurance policies; and (iii) annuities that had been granted; and (c) the life insurer, as part of the business, acquired property before 1 April 1988; and (d) the life insurer, as part of the business, disposes of the property; and (e) either— (i) the life insurer has not already been allowed a deduction for the property, whether under section DR 2 (Disposal of property) or any other provision; or (ii) the life insurer has been allowed a deduction for the property, but only for an amount of depreciation loss or because of the application of the old financial arrangements rules or the financial arrangements rules; and (f) section DR 2 does not apply to the disposal. Deduction (2) The life insurer is allowed a deduction for the amount quantified in section EZ 1 (Life insurers acquiring property before 1 April 1988). Meaning of superannuation policy (3) Superannuation policy means a life insurance policy— (a) that— (i) is vested in a superannuation fund that was or was treated as being a superannuation category 1 scheme on or before 17 December 1987, not including a scheme that was classified by the Government Actuary as a personal pension superannuation scheme and that admitted new members after 17 December 1987; or (ii) was effected for the purposes of any such superannuation fund; or (iii) was accepted by any such superannuation fund for the purposes of the fund; and (b) that has not ceased to be a policy for the purposes of the superannuation fund. Link with subpart DA (4) This section overrides the capital limitation. The general permission must still be satisfied and the other general limitations still apply. Defined in this Act: amount , business , capital limitation , deduction , depreciation loss , financial arrangements rules , general limitation , general permission , income year , life insurance , Life Insurance Fund , life insurance policy , life insurer , old financial arrangements rules , pay , property , superannuation category 1 scheme , superannuation fund , superannuation policy , superannuation scheme , Compare: 2004 No 35 s DZ 2