Non-attributing active insurance CFC status (TOWER Insurance Limited)
CFC 2015/01 applies to TOWER Insurance Limited and grants non-attributing active CRC status to the specified insurance CRC resident in the Cook Islands.
This determination is made under section 91AAQ of the Tax Administration Act 1994.
This power has been delegated by the Commissioner of Inland Revenue to the position of Investigations Manager under section 7 of the Tax Administration Act 1994.
Explanation (which does not form part of the determination)
Under sections CQ 2(1)(h) and DN 2(1)(h) of the Income Tax Act 2007, subject to sections CQ 2(2B) and DN 2(2), no attributed CRC income or loss arises from a CRC that is non-attributing active CRC under section EX 21B of the Income Tax Act 2007.
Section EX21B(3) of the Income Tax Act 2007 provides that a CFC that is an insurer meeting the requirements of a determination made by the Commissioner under section 91AAQ of the Tax Administration Act 1994 is a non-attributing active CFC. In the absence of such a determination, a CFC carrying on an insurance business is unlikely to be a non-attributing active CFC, because insurance income is otherwise treated as passive income and an attributable CFC amount by section ex 20b (3) of the Income Tax Act 2007.
Section 91AAO(1)(a) of the Tax Administration Act 1994 allows a person to apply to the Commissioner for such a determination in respect of a CFC, if the CFC satisfies subsection (2). TOWER Insurance Limited has made application in respect of the CFC set out below.
It has been determined, having regard to the matters set out in the subsections (4) and (5) of section 91AAQ of the tax Administration Act 1994, that the CFC satisfies the requirements set out in section 91AAQ(2) of the Tax Administration Act 1994 and is accordingly a non-attributing active CFC for the purposes of section EX21B of the Income Tax Act 2007.
Scope of determination
The CFC to which this determination applies is:
|TOWER Insurance (Cook Islands) Limited||Cook Islands|
In this document, unless the context otherwise requires:
"Attributed CFC income or loss" means attributed CFC income under section CQ 2 or attributed CFC loss under section DN 2 of the Income Tax Act 2007.
"CFC" means a CFC as defined in section YA 1 of the Income Tax Act 2007.
"Non-attributing active CFC" means a non-attributing active CFC under section EX 21B of the Income Tax Act 2007.
Pursuant to section 91AAQ of the Tax Administration Act 1994, I hereby determine that the above CFC is a non-attributing active CFC for the purposes of section EX 21B of the Income Tax Act 2007.
This determination applies for the 2015-16 and 2016-17 income years.
This determination is signed by me this 15th day of October 2015.