Section EY 1 — Income Tax Act 2007: What this subpart does

EY 1 What this subpart does Two bases (1) This subpart provides for the taxation of life insurers on 2 separate bases, the policyholder base and the shareholder base. Sections EY 2 and EY 3 describe the general apportionment of income and deductions between the 2 bases under this Part. Section LA 8B (General rules particular to life insurers) provides some general rules for tax credits relating to the 2 bases. Parts L and O include tax credit rules and memorandum account rules specific to the 2 bases. Schedular policyholder base income and PIE schedular income (2) Section EY 2 uses the assessable income in a life insurer's policyholder base income, and the life insurer's policyholder base allowable deductions, to calculate their schedular policyholder base income. A life insurer's schedular income derived by their life fund PIE that is a multi-rate PIE is excluded from their schedular policyholder base income, along with deductions for that income. Counting once (3) Income and deductions must be apportioned to either the policyholder base or the shareholder base. There is no double-counting. Defined in this Act: assessable income , deduction , income , life fund PIE , life insurance , life insurer , life reinsurance , memorandum account , multi-rate PIE , policyholder base , policyholder base income , schedular policyholder base income , shareholder base , tax credit Section EY 1: substituted, on 1 July 2010, by section 185(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).