I-3, r. 1 - Regulation respecting the Taxation Act

Section 818r2 Disposition versions

2017-04-12

818R2. (Revoked).

s. 818R1; O.C. 3926-80, s. 31; R.R.Q., 1981, c. I-3, r. 1, s. 818R1; O.C. 91-94, s. 53; O.C. 67-96, s. 49; O.C. 1707-97, s. 58; O.C. 1466-98, s. 126; O.C. 1463-2001, s. 74; O.C. 1470-2002, s. 50; O.C. 1282-2003, s. 49; O.C. 134-2009, s. 1; O.C. 390-2012, s. 43; O.C. 321-2017, s. 36.

2012-09-01

818R2. In Chapters II to XIV, XVI and XX,

“attributed surplus for the year” of a non-resident insurer, for a taxation year, means the aggregate of its property and casualty insurance surplus for the year and the amount obtained by multiplying the excess determined for the year pursuant to the second paragraph of section 818R18 in respect of the insurer by its life surplus factor for the year;

“Canadian business property” of an insurer for a taxation year in respect of an insurance business means

(a)  if the insurer was resident in Canada throughout the year and either did not carry on a life insurance business in the year or did not carry on an insurance business outside Canada in the year, the property used or held by it in the year in the course of carrying on the insurance business in Canada; and

(b)  in any other case, the property designated under sections 818R30 and 818R38 for the year in respect of the insurance business;

“Canadian equity property” means

(a)  a share of the capital stock of a corporation resident in Canada, other than a designated corporation, or an income bond, a development bond or a small business bond issued by a person resident in Canada, other than a designated corporation, or by a partnership, as the case may be; or

(b)  the proportion of shares of the capital stock of a designated corporation, an interest in a partnership or an interest in a trust, that the value for the year of all Canadian equity property owned by the designated corporation, partnership or trust, as the case may be, is of value for the year of all property owned by the designated corporation, partnership or trust, as the case may be;

“Canadian investment fund for the year”, for a taxation year, in respect of a life insurer resident in Canada and a life insurer not resident in Canada, means the amount determined under Chapter III;

“Canadian reserve liabilities” of an insurer, at the end of a taxation year, means the aggregate of its liabilities and reserves in respect of its insurance policies in Canada, excluding its liabilities and reserves in respect of an amount payable out of a segregated fund, as determined at the end of the year for the purposes of the Superintendent of Financial Institutions, or that would be determined at that time if the Superintendent of Financial Institutions required such a determination;

“designated corporation”, in respect of an insurer, at any time in a taxation year, means a corporation in respect of which the insurer or the insurer and a person or partnership that does not deal at arm’s length with the insurer hold, at any time in the year, shares representing not less than 30% of the common shares of the corporation outstanding at that time;

“equity property” means

(a)  a share of the capital stock of a corporation, other than a designated corporation, or an income bond, a development bond or a small business bond issued by a person, other than a designated corporation, or by a partnership, as the case may be; or

(b)  the proportion of shares of the capital stock of a designated corporation, an interest in a partnership or an interest in a trust that the value for the year of all equity property owned by the designated corporation, partnership or trust, as the case may be, is of the value for the year of all property owned by the designated corporation, partnership or trust, as the case may be;

“foreign policy loan” means an amount advanced at a particular time by an insurer to a policyholder in accordance with the terms and conditions of a life insurance policy that is not a life insurance policy in Canada;

“gross Canadian life investment income” of a life insurer for a taxation year means the amount by which the aggregate of the following amounts exceeds the aggregate determined under section 818R3 for the year in respect of the insurer:

(a)  the insurer’s gross investment revenue for the year, to the extent that the revenue is from Canadian business property of the insurer for the year in respect of the insurer’s life insurance business;

(b)  (paragraph revoked);

(c)  the amount included in computing its income for the year under subparagraph b of the first paragraph of section 825 of the Act;

(d)  the portion of the amount deducted in computing the insurer’s income for the preceding taxation year under section 140 of the Act that was in respect of Canadian business property of the insurer for that year in respect of the insurer’s life insurance business;

(d.1)  the total of all amounts each of which is an amount included under Division II of Chapter II of Title V.1 of Book VI of Part I of the Act in computing the insurer’s income for the year in respect of a property disposed of by the insurer that was, in the taxation year of disposition, a Canadian business property of the insurer for that year in respect of the insurer’s life insurance business;

(e)  the total of all amounts each of which is the insurer’s gain for the year from the disposition of a Canadian business property of the insurer for the year in respect of the insurer’s life insurance business, other than a capital property or a property in respect of which Division II of Chapter II of Title V.1 of Book VI of Part I of the Act applies; and

(f)  the total of all amounts each of which is the insurer’s taxable capital gain for the year from the disposition of a Canadian business property of the insurer for the year in respect of the insurer’s life insurance business;

(g)  (paragraph revoked);

“gross investment revenue” of an insurer has the meaning assigned by section 825 of the Act;

“insurance policy in Canada” means

(a)  in the case of a life insurance policy, a life insurance policy in Canada;

(b)  in the case of a fire insurance policy, a policy issued or effected upon property situated in Canada; and

(c)  in the case of any other insurance policy, a policy issued or effected to insure risks that were ordinarily covered within Canada at the time the policy was issued or effected;

“maximum tax actuarial reserve” of an insurer in respect of a particular class of life insurance policies for a taxation year means the maximum amount deductible, in computing its income, pursuant to paragraph a of section 840 of the Act as reserves for the year in respect of policies of that class;

“mean amount on deposit” with an insurer for a taxation year in respect of life insurance policies means one-half of the aggregate of the amounts on deposit with the insurer at the end of the year in respect of those policies and the amounts that were so on deposit at the end of the preceding taxation year in respect of those policies;

“mean Canadian reserve liabilities” of an insurer for a taxation year means one-half of the aggregate of its Canadian reserve liabilities at the end of the year and its Canadian reserve liabilities at the end of the preceding taxation year;

“mean maximum tax actuarial reserve” of an insurer in respect of a particular class of life insurance policies for a taxation year means one-half of the aggregate of its maximum tax actuarial reserve in respect of that class of policies for the year and its maximum tax actuarial reserve in respect of that class of policies for the preceding taxation year;

“mean policy loans and foreign policy loans” of an insurer, for a taxation year, means one-half of the aggregate of its policy loans and foreign policy loans at the end of the year and of its policy loans and foreign policy loans at the end of the preceding taxation year;

“mean policy loans” of an insurer, for a taxation year, means one-half of the aggregate of its policy loans at the end of the year and of its policy loans at the end of the preceding taxation year;

“mean total reserve liabilities” of an insurer for a taxation year means one-half of the aggregate of its total reserve liabilities at the end of the year and its total reserve liabilities at the end of the preceding taxation year;

“policy loan”, “segregated fund”, “amount payable”, “segregated fund policy” and “participating life insurance policy” have the meaning assigned by section 835 of the Act;

“property and casualty insurance surplus” of an insurer, for a taxation year, means the aggregate of the following amounts obtained by using the amounts that the insurer has reported to the Superintendent of Financial Institutions as reserves and allowances in respect of its property and casualty insurance business:

(a)  15% of one-half of the aggregate of its allowance for unearned premiums at the end of the year and its allowance for unearned premiums at the end of the preceding taxation year;

(b)  15% of one-half of the aggregate of its allowance for unpaid settlement claims and settlement expenses at the end of the year and its allowance for unpaid settlement claims and settlement expenses at the end of the preceding taxation year; and

(c)  one-half of the aggregate of its investment valuation reserve at the end of the year and its investment valuation reserve at the end of the preceding taxation year.

“Superintendent of Financial Institutions” has the meaning assigned by paragraph a of section 835 of the Act before being struck out;

“surplus funds derived from operations” has the meaning assigned by paragraph l of section 835 of the Act;

“total depreciation” has the meaning assigned by subparagraph b of the first paragraph of section 93 of the Act;

“total reserve liabilities” of an insurer, at the end of a taxation year, means the aggregate of its liabilities and reserves in respect of the aggregate of its insurance policies, excluding the liabilities and reserves in respect of an amount payable out of a segregated fund, as determined at the end of the year for the purposes of the Superintendent of Financial Institutions.

s. 818R1; O.C. 3926-80, s. 31; R.R.Q., 1981, c. I-3, r. 1, s. 818R1; O.C. 91-94, s. 53; O.C. 67-96, s. 49; O.C. 1707-97, s. 58; O.C. 1466-98, s. 126; O.C. 1463-2001, s. 74; O.C. 1470-2002, s. 50; O.C. 1282-2003, s. 49; O.C. 134-2009, s. 1; O.C. 390-2012, s. 43.