I-3 - Taxation Act

Section 1175.12 Disposition versions

2006-03-01

1175.12. For the purposes of this Part, the capital allowance for a taxation year of a life insurer that carries on business in Canada at any time in the year is the total of

(a)  $10,000,000;

(b)  1/2 of the amount by which the lesser of the following amounts exceeds $10,000,000:

i.  $50,000,000, and

ii.  its taxable capital employed in Canada for the year;

(c)  1/4 of the amount by which the lesser of the following amounts exceeds $50,000,000:

i.  $100,000,000, and

ii.  its taxable capital employed in Canada for the year;

(d)  1/2 of the amount by which the lesser of the following amounts exceeds $200,000,000:

i.  $300,000,000, and

ii.  its taxable capital employed in Canada for the year; and

(e)  3/4 of the amount by which its taxable capital employed in Canada for the year exceeds $300,000,000.

Notwithstanding the first paragraph, where a life insurer is related at the end of a taxation year to another life insurer that carries on business in Canada, its capital allowance for the taxation year is, subject to sections 1175.13, 1175.15 and 1175.16, nil.

1997, c. 14, s. 286.