I-3 - Taxation Act

Section 844.9.1 Disposition versions

2023-09-26

844.9.1. In applying sections 844.8 and 844.9 to an insurer for a taxation year in respect of the International Financial Reporting Standards, the following rules apply:

(a)  subparagraph c of the second paragraph of section 835 is to be read as follows:

“(c) C is the maximum amount that the insurer could deduct under paragraphs a and a.1 of section 840 (as they read in their application to a taxation year that begins before 1 January 2023) as a reserve for its base year if no account were taken of the insurer’s excluded policies;”;

(b)  subparagraph d of the second paragraph of section 835 is to be read as follows:

“(d) D is the amount by which the amount of policy acquisition costs of the insurer that is not deductible in computing the insurer’s income for the year but that, in the absence of subsection 4 of section 175.1 (as it read for the insurer’s base year), would have been deductible in the insurer’s base year or a preceding taxation year is exceeded by the maximum amount that the insurer could deduct under the second paragraph of section 152 as a reserve if no account were taken of the insurer’s excluded policies;”;

(c)  subparagraph g of the second paragraph of section 835 is to be read as follows:

“(g) G is the amount included under paragraph a.1 of section 844 (as it read in its application to a taxation year that begins before 1 January 2023) in computing the insurer’s income for its base year in respect of its life insurance policies other than excluded policies; and”;

(d)  the amount referred to in subparagraph h of the second paragraph of section 835 must be determined without reference to excluded policies.

2011, c. 34, s. 44; 2023, c. 19, s. 76.

2011-12-09

844.9.1. In applying sections 844.8 and 844.9 to a life insurer for a taxation year in respect of the International Financial Reporting Standards adopted by the Accounting Standards Board and effective from 1 January 2011, the following rules apply:

(a)  subparagraph b of the second paragraph of section 835 is to be read as follows:

“(b) B 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 if no account were taken of the life insurer’s excluded policies.”;

(b)  the portion of the first paragraph of sections 844.8 and 844.9 before the formula is to be read as if “that ends after the beginning of the transition year” were replaced by “that ends at least two years after the beginning of the transition year” ;

(c)  subparagraph b of the second paragraph of sections 844.8 and 844.9 is to be read as if “the first day of the transition year” were replaced by “the first day of the first year that ends at least two years after the beginning of the transition year”.

2011, c. 34, s. 44.