Commentary on Sections Structure of Chapters Overview Section 540: When deficiencies arise: events following calculation events
2125.This section is based on section 549 of ICTA. Under subsections (2) to (4), a deficiency may only arise where:
	there is a chargeable event within certain of the categories of chargeable event listed in section 484(1);
	there has previously been a gain on a “calculation event” (see section 491(4)), other than a “personal portfolio bond event”, in respect of that policy or contract; and
	the calculation carried out under section 491 does not produce a gain.
2126.Although the amount of the deficiency to be relieved ignores any gains on personal portfolio bond events under section 522, the calculation under section 491 does not exclude such gains in arriving at the overall “loss”.