I-3 - Taxation Act

Section 92.26 Disposition versions

2010-10-27

92.26. If an insurer has, in a winding-up to which section 556 has applied, been wound up into another corporation (in this section referred to as the “parent”), and immediately after the winding-up the parent carries on an insurance business, in applying sections 92.25 and 175.2.18 in computing the incomes of the insurer and of the parent for the particular taxation years that end on or after the first day (in this section referred to as the “start day”) on which assets of the insurer were distributed to the parent on the winding-up, the following rules apply:

(a)  the parent is, on and after the start day, deemed to be the same corporation as and a continuation of the insurer in respect of

i.  any amount included under section 92.24 or deducted under section 175.2.17 in computing the insurer’s income from an insurance business for its transition year,

ii.  any amount included under section 92.25 or deducted under section 175.2.18 in computing the insurer’s income from an insurance business for a taxation year of the insurer that begins before the start day, and

iii.  any amount that would—in the absence of this section and if the insurer existed and carried on an insurance business on each day that is the start day or a subsequent day and on which the parent carries on an insurance business—be required to be included under section 92.25 or deducted under section 175.2.18, in respect of any of those days, in computing the insurer’s income from an insurance business; and

(b)  the insurer is, in respect of each of its particular taxation years, to determine the number of days that is referred to in subparagraph b of the second paragraph of sections 92.25 and 175.2.18 without reference to the start day and days after the start day.

2010, c. 25, s. 12.