Section EY 16 — Income Tax Act 2007: Policyholder base allowable deductions: non-participation policies

EY 16 Policyholder base allowable deductions: non-participation policies What is included (1) For an income year, a life insurer's deduction that relates to life insurance policies that are not profit participation policies is included as their policyholder allowable deduction to the extent to which it is incurred in relation to their policyholder base income under section EY 15 . Basis of apportionment (2) Despite subsection (1), if a deduction is included in a life insurer's policyholder base allowable deduction under subsection (1), but may also be a shareholder base allowable deduction under section EY 20 , ignoring section EY 20(1)(d), the life insurer must use a basis of apportionment for the deduction which is–– (a) the same as in section EY 15(2) and (3) with necessary modifications; or (b) is the same as in section EY 15(4) with necessary modifications. Defined in this Act: deduction , income year , life insurance policy , life insurer , premium loading , premium loading formula , policyholder base allowable deduction , policyholder base income , profit participation policy , shareholder base allowable deduction Section EY 16: substituted, on 1 July 2010, by section 190(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).