I-3 - Taxation Act

Section 844.13 Disposition versions

2023-09-26

844.13. If at any time an insurer ceases (otherwise than as a result of an amalgamation within the meaning of subsections 1 and 2 of section 544) to carry on all or substantially all of an insurance business (in this section referred to as the “discontinued business”), and neither section 844.10 nor 844.11 applies, the following rules apply:

(a)  there must be deducted, in computing the insurer’s income from the discontinued business for the insurer’s taxation year that includes the time that is immediately before that time, the amount determined by the formula

A - B; and

(b)  there must be included, in computing the insurer’s income from the discontinued business for the insurer’s taxation year that includes the time that is immediately before that time, the amount determined by the formula

C - D.

In the formulas in the first paragraph,

(a)  A is the amount included under section 844.6 in computing the insurer’s income from the discontinued business for its transition year;

(b)  B is the aggregate of all amounts each of which is an amount deducted under section 844.8 in computing the insurer’s income from the discontinued business for a taxation year that began before that time;

(c)  C is the amount deducted under section 844.7 in computing the insurer’s income from the discontinued business for its transition year; and

(d)  D is the aggregate of all amounts each of which is an amount included under section 844.9 in computing the insurer’s income from the discontinued business for a taxation year that began before that time.

2010, c. 25, s. 94; 2023, c. 19, s. 80.

2010-10-27

844.13. If at any time a life insurer ceases (otherwise than as a result of an amalgamation within the meaning of subsections 1 and 2 of section 544) to carry on all or substantially all of a life insurance business (in this section referred to as the “discontinued business”), and neither section 844.10 nor 844.11 applies, the following rules apply:

(a)  there must be deducted, in computing the life insurer’s income from the discontinued business for the life insurer’s taxation year that includes the time that is immediately before that time, the amount determined by the formula

A - B; and

(b)  there must be included, in computing the life insurer’s income from the discontinued business for the life insurer’s taxation year that includes the time that is immediately before that time, the amount determined by the formula

C - D.

In the formulas in the first paragraph,

(a)  A is the amount included under section 844.6 in computing the life insurer’s income from the discontinued business for its transition year;

(b)  B is the aggregate of all amounts each of which is an amount deducted under section 844.8 in computing the life insurer’s income from the discontinued business for a taxation year that began before that time;

(c)  C is the amount deducted under section 844.7 in computing the life insurer’s income from the discontinued business for its transition year; and

(d)  D is the aggregate of all amounts each of which is an amount included under section 844.9 in computing the life insurer’s income from the discontinued business for a taxation year that began before that time.

2010, c. 25, s. 94.