Commentary

D7.5152 Shadow ACT

Corporate tax
Corporate tax | Commentary

D7.5152 Shadow ACT

Corporate tax | Commentary

D7.5152 Shadow ACT

The rules in this division apply for accounting periods beginning before 1 January 2013. For accounting periods beginning on or after 1 January 2013 see Division D7.4.

A life insurance company is subject to the shadow ACT regime1 (see Division D5.1) in the same way as any corporate taxpayer subject to two important differences.

First, the policy holders' share of any franked investment income from investments held in the long-term insurance fund2 is disregarded in calculating the amount of shadow ACT franked by franked investment income received. A similar restriction applies in calculating the amount of surplus franked

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