Section EY 20 — Income Tax Act 2007: Shareholder base allowable deductions: non-participation policies

EY 20 Shareholder base allowable deductions: non-participation policies What is included (1) For an income year, a life insurer's deduction is included as their shareholder base allowable deduction 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 (e): (b) relates to fees and commissions: (c) relates to the life risk component of life reinsurance premiums: (d) is a deduction in relation to investment income that is not included as their policyholder base allowable deduction under section EY 16 : (e) is a premium payback amount, and–– (i) section EY 19 applies or has applied to include the original premium as shareholder base income; and (ii) section EY 30(7) does not apply or has not applied to calculate a transitional amount for the original premium: (f) is not otherwise accounted for in this subpart, for the income year. No double-counting (2) If an amount is included as shareholder base allowable deduction under sections EY 23 to EY 29 , it is not included under this section. Defined in this Act: amount , claim , deduction , income year , life insurance policy , life insurer , life reinsurance , life risk component , policyholder base allowable deduction , premium , premium payback amount , profit participation policy , shareholder base allowable deduction , shareholder base income Section EY 20: substituted, on 1 July 2010, by section 190(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).