Section EY 19 — Income Tax Act 2007: Shareholder base income: non-participation policies

EY 19 Shareholder base income: non-participation policies What is included (1) For an income year, a life insurer's income is included as their shareholder base income if it relates to life insurance policies that are not profit participation policies, and it–– (a) relates to life risk components of premiums and claims, other than for annuities, and is not described in paragraphs (b) to (d): (b) relates to fees and commissions: (c) relates to the life risk component of life reinsurance claims: (d) is investment income that is not included as their policyholder base income under section EY 15 : (e) is not otherwise accounted for in this subpart, for the income year. Treatment of de minimis life risk component amounts (2) An amount of income relating to a policy that, but for this subsection, is an amount related to the life risk of a premium or life reinsurance claim, is treated as not relating to the life risk component for the purposes of subsection (1), if–– (a) the life insurer has actuarially determined that the life risk is 1% or less of the premium or life reinsurance claim; and (b) chooses to apply section EY 15(5) for the policy. No double-counting (3) If an amount is included as shareholder base income under sections EY 23 to EY 29 , it is not included under this section. Defined in this Act: actuarially determined , amount , claim , income year , life insurer , life insurance policy , life reinsurance , life risk , life risk component , policyholder base income , premium , profit participation policy , shareholder base income Section EY 19: substituted, on 1 July 2010, by section 190(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EY 19(2): amended, on 1 July 2010 (applying for all income years beginning on or after 1 July 2010), by section 35(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).