Section EY 2 — Income Tax Act 2007: Policyholder base

EY 2 Policyholder base Policyholder base income (1) A life insurer has policyholder base income,— (a) for savings product policies that are not profit participation policies, under section EY 15 : (b) for profit participation policies, under section EY 17 : (c) under section EY 27(4) . Policyholder base allowable deductions (2) A life insurer has policyholder base allowable deductions,— (a) for savings product policies that are not profit participation policies, under section EY 16 : (b) for profit participation policies, under section EY 18 : (c) under section EY 27(4) : (d) under section EZ 61 (Allowance for cancelled amount: spreading): (e) under section LE 2B (Use of remaining credits by life insurer on policyholder base). Schedular policyholder base income (3) A life insurer's schedular policyholder base income is the amount given by subtracting their policyholder base allowable deductions for an income year, and any amount carried forward to the income year under subsection (5), from the assessable income in their policyholder base income for the income year. Cap on subtracting: ring-fencing policyholder base allowable deductions (4) Despite subsection (3), the total amount that is subtracted under subsection (3), including an amount carried forward to the current year under subsection (5), is no more than the amount of the assessable income in the life insurer’s policyholder base income for the income year. Excess allocations: carrying forward and re-instating next year (5) Any excess not able to be subtracted in the current year because of subsection (4) is carried forward to the next income year. Exception (6) Despite subsections (3) to (5) 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. Defined in this Act: amount , assessable income , income year , life fund PIE , life insurance , life insurer , multi-rate PIE , policyholder base allowable deduction , policyholder base income , profit participation policy , savings product policy , schedular income , schedular policyholder base income Section EY 2: substituted, on 1 July 2010, by section 185(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).