The taxable amount in relation to any untaxed policyholder fund in respect of a tax period shall be an amount determined in accordance with the formula—
in which formula—
| (a) | "T" represents the taxable amount to be determined; |
| (b) | "A" represents the income of such untaxed policyholder fund determined in accordance with the provisions of section 3 in respect of such tax period; |
| (c) | "B" represents the portion of symbol "A" attributable to assets referred to in section 29A(4)(a)(i) of the Income Tax Act as allocated to retirement funds in terms of section 9 during such tax period; |
| (d) | "C" represents the portion of symbol "A" attributable to assets held during such tax period— |
| (i) | representing business of such untaxed policyholder fund as contemplated in section 29A(4)(a)(iii) of the Income Tax Act (excluding assets contemplated in paragraph (c)); |
| (ii) | equal to the actuarial value of liabilities under guaranteed annuities; and |
| (iii) | which have been accounted for and held in a separate portfolio on 1 March 1996 in terms of a practice consistently applied by such untaxed policyholder fund before such date; |
| (e) | "D" represents the actuarial value of the liabilities of the untaxed policyholder fund less the actuarial value of the liabilities relating to the assets contemplated in paragraphs (c) and (d); and |
| (f) | "F" represents the value represented by symbol "D" less the sum of the actuarial value of the liabilities relating to the assets contemplated in |
| (i) | section 29A(4)(a)(ii) of the Income Tax Act (excluding assets in respect of amounts allocated to retirement funds contemplated in paragraph (c) and assets representing guaranteed annuities contemplated in paragraph (d)); and |
| (ii) | section 29A(4)(a)(iii) of the Income Tax Act (excluding assets— |
| (aa) | in respect of amounts allocated to retirement funds contemplated in paragraph (c); |
| (bb) | representing guaranteed annuities contemplated in paragraph (d); and |
| (cc) | contemplated in subparagraph (i)).". |
