Life insurance tax reform: stage 2
Stage 2 of consultation on the government review of the life insurance tax rules has begun with the release today of a second officials' issues paper seeking industry feedback on the direction of reform. The paper suggests a new model for taxing life insurance products, one based on the way that general insurance products are taxed and incorporating aspects of the portfolio investment entity rules. The aim is to deal with weaknesses in the current tax rules that can result in under-taxation of some products and over-taxation of others. Submissions close on 5 April. For more information see "Life insurance tax reform: officials' paper no 2 - suggestions for reform".