The Acting Commissioner of Taxation has forwarded the following memorandum for advice:

A case has come under notice where a taxpayer claimed a deduction of £160 under section 18 (1) (c). Of this amount £50 was in respect of a premium paid to the Nord Stern Life Insurance Company of Berlin.

Taxpayer is a resident of Australia.

It is thought that the wording of the section referred to permits deductions of all insurance premiums and that an amendment would be necessary to limit the deductions to premiums paid on Australian insurances.

I should be pleased to have your opinion on the matter.

There is nothing in paragraph (c) of section 18 (1) of the Act to limit premiums to those paid to Australian companies, or to those carrying on business in Australia.

In my opinion, the taxpayer is entitled to deduct the premium paid to the foreign company within the limit of the amount set forth in paragraph (c) of section 18 (1) of the Act.

[Vol. 15, p. 80]