I-3 - Taxation Act

Section 1175.10 Disposition versions

2006-03-01

1175.10. For the purposes of subparagraph a of the second paragraph of section 1175.6, the amount determined for a particular taxation year in respect of the capital of the foreign insurance subsidiaries of a life insurer is equal to the aggregate of all amounts each of which is, in respect of a foreign insurance subsidiary of the life insurer, the amount by which the amount that would, had the subsidiary been resident in Canada throughout its last taxation year ending at or before the end of the particular taxation year, have been its capital for that year exceeds the aggregate of all amounts each of which is

(a)  an amount included in computing that capital in respect of a share of the subsidiary’s capital stock or its long-term debt that was owned by

i.  the life insurer,

ii.  a subsidiary of the life insurer,

iii.  a corporation that is resident in Canada, that carried on a life insurance business in Canada at any time in its last taxation year ending at or before the end of the life insurer’s taxation year, and that is

(1)  a corporation of which the life insurer is a subsidiary, or

(2)  a subsidiary of a corporation described in subparagraph 1,

iv.  a subsidiary of a corporation described in subparagraph iii; or

(b)  an amount included in computing that capital in respect of any surplus of the subsidiary contributed by a corporation described in any of subparagraphs i to iv of paragraph a, other than an amount referred to in paragraph a.

1997, c. 14, s. 286.