Section EY 4 — Income Tax Act 2007: Apportionment of income of particular source or nature, and of tax credits

EY 4 Apportionment of income of particular source or nature, and of tax credits Default basis (1) For a class of policies, income of a particular source or nature, and tax credits received, are apportioned between the policyholder base and shareholder base–– (a) in the same proportion as the policyholder base income relating to the particular source, nature, or credits bears to the life insurer's total gross gains relating to the particular source, nature, or credits, in the case of the policyholder base: (b) in the same proportion as the shareholder base income relating to the particular source, nature, or credits bears to the life insurer's total gross gains relating to the particular source, nature, or credits, in the case of the shareholder base. More equitable or reasonable basis (2) For a class of policies, the life insurer may use a basis of apportionment that is different from the basis described in subsection (1), if that basis results in an amount, actuarially determined, that is more equitable and reasonable than an amount determined using the basis described in subsection (1). Defined in this Act: actuarially determined , amount , class of policies , income , life insurer , policyholder base , policyholder base income , shareholder base , shareholder base income , tax credit Section EY 4: substituted, on 1 July 2010, by section 185(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).