Income Tax Act 1947 · 2020 Revised Edition · Part 5 · Deductions Against Income
14K. Deduction for special reserve of approved general insurer
Feedback & supportThe Minister may by regulations provide that, for the purpose of ascertaining the income of a general insurer approved by the Minister or such person as the Minister may appoint from carrying on the business of insuring and reinsuring offshore risks, there is to be allowed for a period of 10 years a deduction for the prescribed amount of special reserves set aside by the approved general insurer for prescribed offshore risks.
Regulations made under subsection (1) may provide for —
any amount transferred to the special reserve on an earlier date to be deemed to have been transferred out of the special reserve first;
the circumstances in which any amount which has been allowed as deduction under this section may be deemed as trading receipt for any basis period;
the adjustment of any amount deemed as trading receipt for any basis period in respect of any amount which has been allowed as deduction under this section; and
generally for giving full effect to or for carrying out the purposes of this section.
In this section —
“insurer” has the meaning given by section 43C;
“offshore risk” has the meaning given by section 26.[14O