Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If the foreign company is a * foreign life insurance company or a * foreign general insurance company, work out its * active foreign business asset percentage according to section 768 - 510, but with the modifications set out in subsections (2) and (3).
(2) Treat a reference in the following provisions to a period as a reference to a * statutory accounting period of the foreign company:
(a) paragraphs 768 - 510(3)(b) and (c);
(b) section 768 - 525.
(3) Apply the modifications set out in the following table.
Modifications for foreign life insurance companies and foreign general insurance companies | ||
Item | The result of this step: | is increased by the amount applicable under subsection (4) for this statutory accounting period: |
1 | step 2 of the method statement in subsection 768 - 520(1) | the most recent * statutory accounting period of the foreign company ending at or before the time mentioned in that step |
2 | step 1 of the method statement in subsection 768 - 525(3) | the * statutory accounting period mentioned in that step (as modified by subsection (2) of this section) |
3 | step 2 of the method statement in subsection 768 - 525(3) | the * statutory accounting period mentioned in that step (as modified by subsection (2) of this section) |
(4) The amount applicable under this subsection for a * statutory accounting period of the foreign company is worked out using the following formula:
where:
"active insurance amount means" :
(a) if the foreign company is a * foreign life insurance company--the untainted policy liabilities (within the meaning of subsection 446(2) of the Income Tax Assessment Act 1936 ) of the foreign company for the statutory accounting period; or
(b) if the foreign company is a * foreign general insurance company--the active general insurance amount worked out under subsection (5) for the statutory accounting period.
"total insurance assets" means:
(a) if the foreign company is a * foreign life insurance company--the total assets (within the meaning of subsection 446(2) of the Income Tax Assessment Act 1936 ) of the foreign company for the statutory accounting period; or
(b) if the foreign company is a * foreign general insurance company--the total assets (within the meaning of subsection 446(4) of that Act) of the foreign company for the statutory accounting period.
"value of non-active foreign business assets" means:
(a) for the purposes of item 1 of the table in subsection (3)--the difference between:
(i) the result of step 1 of the method statement in subsection 768 - 520(1); and
(ii) the result of step 2 of that method statement (apart from this section); or
(b) for the purposes of item 2 of the table in subsection (3)--the difference between:
(i) the result of step 1 of the method statement in subsection 768 - 525(2); and
(ii) the result of step 1 of the method statement in subsection 768 - 525(3) (apart from this section); or
(c) for the purposes of item 3 of the table in subsection (3)--the difference between:
(i) the result of step 2 of the method statement in subsection 768 - 525(2); and
(ii) the result of step 2 of the method statement in subsection 768 - 525(3) (apart from this section).
Active insurance amount for foreign general insurance company
(5) The active general insurance amount under this subsection for a * statutory accounting period of the foreign company is worked out using the following formula:
where:
"net assets" means the net assets (within the meaning of subsection 446(4) of the Income Tax Assessment Act 1936 ) of the foreign company for the statutory accounting period.
"solvency amount" means the solvency amount (within the meaning of subsection 446(4) of the Income Tax Assessment Act 1936 ) of the foreign company for the statutory accounting period.
"tainted outstanding claims" means the tainted outstanding claims (within the meaning of subsection 446(4) of the Income Tax Assessment Act 1936 ) of the foreign company for the statutory accounting period.
"total general insurance assets" means the total assets (within the meaning of subsection 446(4) of the Income Tax Assessment Act 1936 ) of the foreign company for the statutory accounting period.