I-3 - Taxation Act

Section 1175.9 Disposition versions

2010-10-27

1175.9. For the purposes of this Part, the capital of a life insurer that throughout a taxation year is not resident in Canada is the aggregate at the end of the taxation year of

(a)  the greater of

i.  the amount by which its surplus funds derived from operations, as defined by subparagraph l of the first paragraph of section 835, at the end of the year, computed as if no tax were payable under this Part or Parts I.3 and VI of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) for the year, exceeds the aggregate of all amounts each of which is

(1)  an amount on which it was required to pay tax under Part XIV of the Income Tax Act for a preceding taxation year, or would but for subsection 5.2 of section 219 of that Act have been required to pay such tax, except the portion of the amount on which tax was payable, or would have been payable, because of subparagraph i.1 of paragraph a of subsection 4 of section 219 of that Act, and

(2)  an amount on which it was required to pay, or would but for subsection 5.2 of section 219 of that Act have been required to pay, tax under subsection 5.1 of section 219 of the Income Tax Act for the year because of the transfer of an insurance business to which sections 832.3 and 832.7 apply, and

ii.  its attributed surplus, within the meaning assigned by the regulations made under section 818, for the year;

(b)  any other surpluses relating to its insurance businesses carried on in Canada; and

(c)  the amount of its long-term debt that may reasonably be regarded as relating to its insurance businesses carried on in Canada;

(d)  (paragraph repealed).

1997, c. 14, s. 286; 1998, c. 16, s. 250; 2001, c. 7, s. 168; 2001, c. 53, s. 258; 2010, c. 25, s. 225.

2006-03-01

1175.9. For the purposes of this Part, the capital of a life insurer that throughout a taxation year is not resident in Canada is the aggregate at the end of the taxation year of

(a)  the greater of

i.  the amount by which its surplus funds derived from operations, as defined by paragraph l of section 835, at the end of the year, computed as if no tax were payable under this Part or Parts I.3 and VI of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) for the year, exceeds the aggregate of all amounts each of which is

(1)  an amount on which it was required to pay tax under Part XIV of the Income Tax Act for a preceding taxation year, or would but for subsection 5.2 of section 219 of that Act have been required to pay such tax, except the portion of the amount on which tax was payable, or would have been payable, because of subparagraph i.1 of paragraph a of subsection 4 of section 219 of that Act, and

(2)  an amount on which it was required to pay, or would but for subsection 5.2 of section 219 of that Act have been required to pay, tax under subsection 5.1 of section 219 of the Income Tax Act for the year because of the transfer of an insurance business to which sections 832.3 and 832.7 apply, and

ii.  its attributed surplus, within the meaning assigned by the regulations made under section 818, for the year;

(b)  any other surpluses relating to its insurance businesses carried on in Canada;

(c)  the amount of its long-term debt that may reasonably be regarded as relating to its insurance businesses carried on in Canada; and

(d)  the amount by which

i.  the amount of its reserves for the year, other than its reserves in respect of amounts payable out of segregated funds, that may reasonably be regarded as having been established in respect of its insurance businesses carried on in Canada, exceeds

ii.  the aggregate of

(1)  all amounts each of which is the amount of a reserve, other than a reserve described in paragraph a of section 840, to the extent that it is included in the amount determined under subparagraph i and is deducted in computing its income under Part I for the year,

(2)  all amounts each of which is the amount of a reserve described in paragraph a of section 840, to the extent that it is included in the amount determined under subparagraph i and is deductible under that paragraph a in computing its income under Part I for the year, and

(3)  all amounts each of which is the amount outstanding, including any interest accrued thereon, at the end of the year in respect of a policy loan, within the meaning of paragraph h of section 835, that was made by the life insurer, to the extent that it is deducted in computing an amount determined under subparagraph 2.

1997, c. 14, s. 286; 1998, c. 16, s. 250; 2001, c. 7, s. 168; 2001, c. 53, s. 258.