I-3, r. 1 - Regulation respecting the Taxation Act

Section 825r4 Disposition versions

2012-09-01

825R4. The positive or negative amount, as the case may be, that is to be determined under this section in respect of an insurer for a taxation year, for the purposes of subparagraph a of the second paragraph of section 825R2, is

(a)  if the value for the year of the insurer’s foreign investment property that is designated insurance property for the year is not greater than 5% of the amount of the insurer’s mean Canadian investment fund for the year and the insurer so elects in its fiscal return under Part I of the Act for the year, the amount determined by the formula

[((A + B) / C) × (D + K)] + [(E / F) × G]; and

(b)  in any other case, the amount determined by the formula

[((A + B) / C) × D] + [(E / F) × G] + [((H + I) / J) × K].

In the formulas in the first paragraph,

(a)  A is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under section 825R5 in respect of Canadian investment property, other than Canadian equity property, owned by it at any time in the year;

(b)  B is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under section 825R6 in respect of Canadian investment property, other than Canadian equity property, disposed of by the insurer in the year or a preceding taxation year;

(c)  C is the value for the year of the aggregate of Canadian investment property, other than Canadian equity property and any property described in paragraph i of the definition of “Canadian investment property” in section 818R53, owned by the insurer at any time in the year;

(d)  D is the value for the year of all of the insurer’s Canadian investment property for the year, other than Canadian equity property or any property described in paragraph i of the definition of “Canadian investment property” in section 818R53, that is designated insurance property of the insurer for the year;

(e)  E is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under section 825R5 in respect of Canadian investment property that is Canadian equity property owned by it at any time in the year;

(f)  F is the value for the year of the aggregate of Canadian investment property that is Canadian equity property, other than any property described in paragraph i of the definition of “Canadian investment property” in section 818R53, owned by the insurer at any time in the year;

(g)  G is the value for the year of all of the insurer’s Canadian investment property for the year, other than any property described in paragraph i of the definition of “Canadian investment property” in section 818R53, that is Canadian equity property and designated insurance property of the insurer for the year;

(h)  H is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under section 825R5 in respect of foreign investment property owned by the insurer at any time in the year;

(i)  I is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under section 825R6 in respect of foreign investment property disposed of by the insurer in the year or a preceding taxation year;

(j)  J is the value for the year of the aggregate of foreign investment property, other than any property described in paragraph e of section 818R64, owned by the insurer at any time in the year;

(k)  K is the value for the year of all of the insurer’s foreign investment property, other than any property described in paragraph e of section 818R64, that is designated insurance property for the year.

s. 825R4; O.C. 91-94, s. 80; O.C. 1463-2001, s. 89; O.C. 1149-2006, s. 40; O.C. 134-2009, s. 1.