Section LE 2B — Income Tax Act 2007: Use of remaining credits by life insurer on policyholder base

LE 2B Use of remaining credits by life insurer on policyholder base When this section applies (1) This section applies to a life insurer who has an amount of tax credit remaining for a tax year (the surplus credit year ) under section LA 5(4) (Treatment of remaining credits), but only to the extent to which the amount is for their policyholder base. Policyholder base allowable deduction (2) The life insurer has a deduction included as their policyholder base allowable deduction, for the income year corresponding to the tax year after the surplus credit year equal to an amount calculated using the formula–– policyholder remaining credit policyholder rate. Definition of items in formula (3) In the formula,–– (a) policyholder remaining credit is the amount of the tax credit remaining for the surplus credit year under section LA 5(4) , but only to the extent to which the amount is for the life insurer's policyholder base: (b) policyholder rate is the basic rate of income tax set out in schedule 1, part A, clause 8 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits). Defined in this Act: amount , deduction , income tax , income year , life insurer , policyholder base , policyholder base allowable deduction , tax credit , tax year Section LE 2B: inserted, on 1 July 2010, by section 326(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).