Section EX 70 — Income Tax Act 2007: Market value of life policy and superannuation entitlements

EX 70 Market value of life policy and superannuation entitlements When this section applies (1) This section applies when, in order to calculate a person’s FIF income or loss, it is necessary to calculate the market value of a person’s rights to benefit under a life insurance policy or as a beneficiary under a superannuation scheme. Value of life insurance policy (2) The market value of rights to benefit under a life insurance policy is equal to their surrender value. Limit to subsection (2) (3) Subsection (2) applies only for the purpose of calculating the cost of a person’s rights to benefit from a life insurance policy under— (a) section EX 64(4) ; and (b) section EX 65(2) . Value of superannuation scheme entitlement (4) The market value at any time of a person’s rights to benefit under a superannuation scheme is equal to the total of costs incurred up to that time by or for the person on acquiring the rights if— (a) it is not reasonably practicable to calculate the actual market value; and (b) they have not derived any material gain from the rights up to that time. Defined in this Act: FIF income , life insurance policy , loss , market value , superannuation scheme , Compare: 2004 No 35 s EX 58