I-3 - Taxation Act

Section 832.6 Disposition versions

2023-09-26

832.6. Where, at any time in a particular taxation year, an insurer not resident in Canada carries on an insurance business in Canada and, immediately before that time, the insurer was not carrying on an insurance business in Canada or ceased to be exempt from tax under this Part on any income from such business by reason of any Act of the Legislature of Québec or of the Government of Canada or of anything approved, made or declared to have the force of law thereunder, for the purpose of computing the income of the insurer for the particular taxation year, the following rules apply:

(a)  the insurer is deemed to have had a taxation year ending immediately before the commencement of the particular taxation year;

(b)  for the purposes of paragraphs d, d.1 and e of section 87, sections 818 and 825 and paragraph a of section 844, the insurer is deemed to have carried on the insurance business in Canada in the preceding taxation year referred to in paragraph a and to have deducted, in computing its income for that year, the maximum amounts to which it would have been entitled under sections 140, 140.1 and 140.2, the second paragraph of section 152 and paragraph a of section 840;

(b.1)  for the purposes of section 157.6.1 and paragraph a.2 of section 840, the insurer is deemed to have carried on the insurance business in Canada in the preceding taxation year referred to in paragraph a and to have included, in computing its income for that preceding taxation year, the amounts that would have been prescribed in respect of the insurer for the purposes of paragraph e.1 of section 87 and paragraph a.1 of section 844 for that year in respect of the insurance policies of that business;

(c)  the insurer is deemed to have disposed, immediately before the beginning of the particular taxation year, of each property owned by it at that time that is designated insurance property in relation to the insurance business in Canada for the particular taxation year, for proceeds of disposition equal to the fair market value of the property at that time and to have reacquired, at the beginning of the particular taxation year, the property at a cost equal to that fair market value; and

(d)  (paragraph repealed).

1990, c. 59, s. 314; 1997, c. 14, s. 145; 1997, c. 31, s. 143; 1998, c. 16, s. 197; 2004, c. 8, s. 161; 2009, c. 5, s. 349; 2015, c. 24, s. 118; 2020, c. 16, s. 122; 2023, c. 19, s. 65.

2020-09-24

832.6. Where, at any time in a particular taxation year, an insurer not resident in Canada carries on an insurance business in Canada and, immediately before that time, the insurer was not carrying on an insurance business in Canada or ceased to be exempt from tax under this Part on any income from such business by reason of any Act of the Legislature of Québec or of the Government of Canada or of anything approved, made or declared to have the force of law thereunder, for the purpose of computing the income of the insurer for the particular taxation year, the following rules apply:

(a)  the insurer is deemed to have had a taxation year ending immediately before the commencement of the particular taxation year;

(b)  for the purposes of paragraphs d, d.1 and e of section 87, sections 818 and 825 and paragraph a of section 844, the insurer is deemed to have carried on the insurance business in Canada in the preceding taxation year referred to in paragraph a and to have deducted, in computing its income for that year, the maximum amounts to which it would have been entitled under sections 140, 140.1 and 140.2, the second paragraph of section 152 and paragraphs a and a.1 of section 840;

(b.1)  for the purposes of section 157.6.1 and paragraph a.2 of section 840, the insurer is deemed to have carried on the insurance business in Canada in the preceding taxation year referred to in paragraph a and to have included, in computing its income for that preceding taxation year, the amounts that would have been prescribed in respect of the insurer for the purposes of paragraph e.1 of section 87 and paragraph a.1 of section 844 for that year in respect of the insurance policies of that business;

(c)  the insurer is deemed to have disposed, immediately before the beginning of the particular taxation year, of each property owned by it at that time that is designated insurance property in relation to the insurance business in Canada for the particular taxation year, for proceeds of disposition equal to the fair market value of the property at that time and to have reacquired, at the beginning of the particular taxation year, the property at a cost equal to that fair market value; and

(d)  (paragraph repealed).

1990, c. 59, s. 314; 1997, c. 14, s. 145; 1997, c. 31, s. 143; 1998, c. 16, s. 197; 2004, c. 8, s. 161; 2009, c. 5, s. 349; 2015, c. 24, s. 118; 2020, c. 16, s. 122.

2015-10-26

832.6. Where, at any time in a particular taxation year, an insurer not resident in Canada carries on an insurance business in Canada and, immediately before that time, the insurer was not carrying on an insurance business in Canada or ceased to be exempt from tax under this Part on any income from such business by reason of any Act of the Legislature of Québec or of the Government of Canada or of anything approved, made or declared to have the force of law thereunder, for the purpose of computing the income of the insurer for the particular taxation year, the following rules apply:

(a)  the insurer is deemed to have had a taxation year ending immediately before the commencement of the particular taxation year;

(b)  for the purposes of paragraphs d and e of section 87, sections 818 and 825 and paragraph a of section 844, the insurer is deemed to have carried on the insurance business in Canada in the preceding taxation year referred to in paragraph a and to have deducted, in computing its income for that year, the maximum amounts to which it would have been entitled under sections 140, 140.1 and 140.2, the second paragraph of section 152 and paragraphs a and a.1 of section 840;

(b.1)  for the purposes of section 157.6.1 and paragraph a.2 of section 840, the insurer is deemed to have carried on the insurance business in Canada in the preceding taxation year referred to in paragraph a and to have included, in computing its income for that preceding taxation year, the amounts that would have been prescribed in respect of the insurer for the purposes of paragraph e.1 of section 87 and paragraph a.1 of section 844 for that year in respect of the insurance policies of that business;

(c)  the insurer is deemed to have disposed, immediately before the beginning of the particular taxation year, of each property owned by it at that time that is designated insurance property in relation to the insurance business in Canada for the particular taxation year, for proceeds of disposition equal to the fair market value of the property at that time and to have reacquired, at the beginning of the particular taxation year, the property at a cost equal to that fair market value; and

(d)  (paragraph repealed).

1990, c. 59, s. 314; 1997, c. 14, s. 145; 1997, c. 31, s. 143; 1998, c. 16, s. 197; 2004, c. 8, s. 161; 2009, c. 5, s. 349; 2015, c. 24, s. 118.

2009-05-15

832.6. Where, at any time in a particular taxation year, an insurer not resident in Canada carries on an insurance business in Canada and, immediately before that time, the insurer was not carrying on an insurance business in Canada or ceased to be exempt from tax under this Part on any income from such business by reason of any Act of the Legislature of Québec or of the Government of Canada or of anything approved, made or declared to have the force of law thereunder, for the purpose of computing the income of the insurer for the particular taxation year, the following rules apply:

(a)  the insurer is deemed to have had a taxation year ending immediately before the commencement of the particular taxation year;

(b)  for the purposes of paragraphs d and e of section 87, sections 818 and 825 and paragraph a of section 844, the insurer is deemed to have carried on the insurance business in Canada in the preceding taxation year referred to in paragraph a and to have claimed the maximum amounts to which it would have been entitled under sections 140, 140.1 and 140.2, the second paragraph of section 152 and paragraphs a, a.1 and d of section 840 for that year;

(b.1)  for the purposes of section 157.6.1 and paragraph a.2 of section 840, the insurer is deemed to have carried on the insurance business in Canada in the preceding taxation year referred to in paragraph a and to have included, in computing its income for that preceding taxation year, the amounts that would have been prescribed in respect of the insurer for the purposes of paragraph e.1 of section 87 and paragraph a.1 of section 844 for that year in respect of the insurance policies of that business;

(c)  the insurer is deemed to have disposed, immediately before the beginning of the particular taxation year, of each property owned by it at that time that is designated insurance property in relation to the insurance business in Canada for the particular taxation year, for proceeds of disposition equal to the fair market value of the property at that time and to have reacquired, at the beginning of the particular taxation year, the property at a cost equal to that fair market value; and

(d)  (paragraph repealed).

1990, c. 59, s. 314; 1997, c. 14, s. 145; 1997, c. 31, s. 143; 1998, c. 16, s. 197; 2004, c. 8, s. 161; 2009, c. 5, s. 349.

2006-03-01

832.6. Where, at any time in a particular taxation year, an insurer not resident in Canada carries on an insurance business in Canada and, immediately before that time, the insurer was not carrying on an insurance business in Canada or ceased to be exempt from tax under this Part on any income from such business by reason of any Act of the Legislature of Québec or of the Government of Canada or of anything approved, made or declared to have the force of law thereunder, for the purpose of computing the income of the insurer for the particular taxation year, the following rules apply:

(a)  the insurer is deemed to have had a taxation year ending immediately before the commencement of the particular taxation year;

(b)  for the purposes of paragraphs d and e of section 87, sections 818 and 825 and paragraph a of section 844, the insurer is deemed to have carried on the insurance business in Canada in the preceding taxation year referred to in paragraph a and to have claimed the maximum amounts to which it would have been entitled under sections 140, 140.1 and 140.2, the second paragraph of section 152 and paragraphs a, a.1 and d of section 840 for that year;

(b.1)  for the purposes of section 157.6.1 and paragraph a.2 of section 840, the insurer is deemed to have carried on the insurance business in Canada in the preceding taxation year referred to in paragraph a and to have included, in computing its income for that preceding taxation year, the amounts that would have been prescribed in respect of the insurer for the purposes of paragraph e.1 of section 87 and paragraph a.1 of section 844 for that year in respect of the insurance policies of that business;

(c)  the insurer is deemed to have disposed, immediately before the beginning of the particular taxation year, of each property owned by it at that time that is designated insurance property in relation to the insurance business in Canada for the particular taxation year, for proceeds of disposition equal to the fair market value of the property at that time and to have reacquired, at the beginning of the particular taxation year, the property at a cost equal to that fair market value; and

(d)  where paragraph c applies in respect of depreciable property of the insurer and the cost thereof to the insurer immediately before the commencement of the particular taxation year exceeds the fair market value thereof at that time, for the purposes of Division II of Chapter II of Title III of Book III, sections 130 and 130.1 and the regulations made under paragraph a of section 130,

i.  the capital cost of the property to the insurer at that time is deemed to be the cost thereof to the insurer at that time, and

ii.  the excess is deemed to have been deducted by the insurer in respect of the property under regulations made under paragraph a of section 130 in computing its income for taxation years ending before the commencement of the particular taxation year.

1990, c. 59, s. 314; 1997, c. 14, s. 145; 1997, c. 31, s. 143; 1998, c. 16, s. 197; 2004, c. 8, s. 161.