|
|
Amendments as to liability of assurance companies.
|
3.—(1) Where the profits of an assurance company in respect of its life assurance business are, for the purposes of the Income Tax Acts, computed in accordance with the rules applicable to Case I of Schedule D of the Income Tax Act, 1918, then, subject to subsection (3) of this section, the following provisions shall have effect:—
|
|
| |
(a) such part of those profits as belongs or is allocated to, or is expended on behalf of, policy-holders or annuitants shall be excluded in making the computation;
|
|
| |
(b) such part of those profits as is reserved for policy-holders or annuitants shall also be excluded in making the computation, but if any profits so excluded as being so reserved cease at any time to be so reserved and are not allocated to, or expended on behalf of, policy-holders or annuitants, then those profits shall be treated as profits of the company for the year in which they ceased to be so reserved.
|
|
| |
(2) Where an assurance company carries on both ordinary life assurance business and industrial life assurance business, then, subject to subsection (3) of this section, the business of each such class shall, for the purposes of the Income Tax Acts, be treated as though it were a separate business and section 33 of the Income Tax Act, 1918, shall apply separately to each such class of business.
|
|
| |
(3) Neither subsection (1) nor subsection (2) of this section shall apply to an assurance company in respect of any year of assessment unless the company elects, by giving notice in writing to the inspector of taxes within twelve months after the end of that year, that the said subsections (1) and (2) shall both apply to it in respect of that year.
|
