I-3 - Taxation Act

Section 844.15 Disposition versions

2023-09-26

844.15. (Repealed).

2017, c. 1, s. 243; 2023, c. 19, s. 82.

2017-02-08

844.15. In applying sections 844.6 to 844.9 to a life insurer for a taxation year,

(a)  if the application of one or more of those sections 844.6 to 844.9 is in respect of the amendment made to paragraph b of section 840R12 of the Regulation respecting the Taxation Act (chapter I-3, r. 1) by subsection 1 of section 20 of the Regulation to amend the Regulation respecting the Taxation Act enacted by (O.C. 1105-2014, 2014, G.O. 2, 2812) and applicable from the life insurer’s taxation year 2012, the life insurer’s reserve transition amount for its transition year in respect of that amendment is to be determined as if subparagraph a of the second paragraph of section 835 were read as follows:

“(a) A is the maximum amount that the life insurer would be permitted to claim under paragraph a of section 840 as a reserve for its base year in respect of its life insurance policies in Canada if paragraph b of section 840R12 of the Regulation respecting the Taxation Act were read as it applied to the life insurer’s taxation year 2012; and”;

(b)  if one or more of those sections 844.6 to 844.9 applies to the same taxation year in respect of both the amendment referred to in paragraph a and the International Financial Reporting Standards adopted by the Accounting Standards Board and effective as of 1 January 2011, for the purpose of applying those sections 844.6 to 844.9 in respect of a transition year described in subparagraph ii of subparagraph n of the first paragraph of section 835, subparagraph ii of subparagraph a of the second paragraph of section 835 is to be read as follows:

“ ii. the regulations made under paragraph a of section 840 applied to the life insurer for its base year, as they read in respect of its transition year and determined without reference to the amendment made to paragraph b of section 840R12 of the Regulation respecting the Taxation Act by subsection 1 of section 20 of the Regulation to amend the Regulation respecting the Taxation Act enacted by (O.C. 1105-2014, 2014, G.O. 2, 2812) and applicable from the life insurer’s taxation year 2012; and”; and

(c)  if the life insurer has more than one transition year for the same taxation year, the following rules apply:

i.  the computation of the reserve transition amount for the transition year, and the requirement to include, or right to deduct, under those sections 844.6 to 844.9 an amount in respect of that reserve transition amount, are to be determined, for each of those transition years, as if that transition year were the only transition year of the life insurer for that taxation year, and

ii.  for the purposes of those sections 844.6 to 844.9, a reference to a transition year is a reference to each of those transition years.

2017, c. 1, s. 243.