Malaysia legislation
Section 12
Seksyen 12
Seksyen 60 Akta ibu adalah dipinda—
(a)
dengan menggantikan noktah di hujung subperenggan (2)(b)(ii) dengan koma bernoktah dan memasukkan kemudian daripada itu perenggan yang berikut:
"(c) where an insurer carries on life business, the income of the life fund shall be treated as a separate source of income from the income of the shareholders' fund in respect of the life business.";
(b)
dengan menggantikan subseksyen (3) dengan subseksyen yang berikut:
"（3）The adjusted income of the life fund for the basis period for a year of assessment of an insurer resident for the basis year for that year of assessment shall be ascertained by—
(a)
taking the aggregate of—
(i)
the amount of gross income for that period from the investments made out of any of the insurer's life funds; and
(ii)
the amount of any gross proceeds (whether or not of an income nature) which are not gross income to which subparagraph (i) applies and which are first receivable in that period in connection with the realisation of those investments or any rights arising from them; and
(b)
deducting from that aggregate where paragraph (a)(ii) is applicable for that period to gross proceeds receivable in connection with any investments or rights, the cost of acquiring and realising those investments or rights.
(3A)
The adjusted income of the shareholders' fund for the basis period for a year of assessment of an insurer resident for the basis year for that year of assessment shall be ascertained by—
(a)
taking the aggregate of—
(i)
the amount of gross income for that period from the investments made out of any of the shareholders' funds; and
(ii)
the amount of any gross proceeds (whether or not of an income nature) which are not gross income to which subparagraph (i) applies and which are first receivable in that period in connection with the realisation of those investments or any rights arising from them; and
(iii)
the amount of the actuarial surplus (subject to any adjustment as the Director
General may think fit to make in accordance with the provisions of this Act) for that period arising from the life fund as is apportioned to the shareholders' fund; and
(b)
deducting from that aggregate where paragraph (a)(ii) is applicable for that period to gross proceeds receivable in connection with any investments or rights, the cost of acquiring and realising those investments or rights.";
(c)
dengan menggantikan subseksyen (4) dengan subseksyen yang berikut:
"（4）The adjusted income of the life fund of an insurer not resident for the basis year for that year of assessment shall where that business is wholly or partly carried on in Malaysia be ascertained by—
(a)
taking the aggregate of—
(i)
the amount of gross income for that period from investments made (in Malaysia or elsewhere) out of the insurer's Malaysian life fund; and
(ii)
the amount of any gross proceeds (whether or not of an income nature) which are not gross income to which subparagraph (i) applies and which are first receivable in that period in connection with the realisation of those investments or any rights arising from them; and
(b)
deducting from that aggregate where paragraph (a)(ii) is applicable for that period to gross proceeds receivable in connection with any investments or rights,the cost of acquiring and realising those investments or rights.
(4A)
The adjusted income of the shareholders' fund for the basis period for a year of assessment of an insurer not resident for the basis year for that year of assessment shall, where that business is wholly or partly carried on in Malaysia, be ascertained by—
(a)
taking the aggregate of—
(i)
the amount of gross income for that period from the investments made out of any of the shareholders' funds; and
(ii)
the amount of any gross proceeds (whether or not of an income nature) which are not gross income to which subparagraph (i) applies and which are first receivable in that period in connection with the realisation of those investments or any rights arising from them; and
(iii)
the amount of the actuarial surplus (subject to any adjustment as the Director General may think fit to make in accordance with the provisions of this Act) for that period arising from the life fund as is apportioned to the shareholders' fund; and
(b)
deducting from that aggregate where paragraph (a)(ii) is applicable for that period to gross proceeds receivable in connection with any investments or rights, the cost of acquiring and realising those investments or rights.
(4B)
The adjusted income as ascertained under subsections (3A) and (4A) shall be deemed to be the statutory income from that source.";
(d)
dalam subseksyen (5)—
(i)
dalam subperenggan (a)(iv) dengan memasukkan selepas perkataan "recovered" perkataan "or recoverable"; dan
(ii)
dalam perenggan (b) dengan menggantikan subperenggan (i) dengan subperenggan yang berikut:
" (i) claims incurred in that period in connection with his general policies;";
(e)
dalam subseksyen (6)—
(i)
dalam subperenggan (a)(iv) dengan memasukkan selepas perkataan "recovered" perkataan "or recoverable"; dan
(ii)
dalam perenggan (b) dengan menggantikan subperenggan (i) dengan subperenggan yang berikut:
" (i) claims incurred in that period in connection with his Malaysian general policies"; dan
(f)
dengan memasukkan selepas subseksyen (10) subseksyen yang berikut:
"（10A）Notwithstanding section 43(2) and section 60(10), any unabsorbed losses of the life business shall only be available for deduction against the statutory income for the basis period for a year of assessment and subsequent years of assessment in respect of the life fund of the insurer.
(10B)
Notwithstanding paragraph 75 of Schedule 3, any unabsorbed allowances of the life business shall only be available for deduction against the adjusted income for the basis period for a year of assessment and subsequent years of assessment in respect of the life fund of the insurer.
(10c)
Allowances under Schedule 3 shall only be available for deduction against the adjusted income of the life fund and the balance of such allowances shall not be available as a deduction against the adjusted income of the shareholders' fund.".