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

Section 818r38 Disposition versions

2017-04-12

818R38. (Revoked).

s. 818R30; O.C. 3926-80, s. 31; R.R.Q., 1981, c. I-3, r. 1, s. 818R30; O.C. 91-94, s. 74; O.C. 1463-2001, s. 84; O.C. 1470-2002, s. 56; O.C. 134-2009, s. 1; O.C. 321-2017, s. 36.

2012-09-01

818R38. For the purposes of section 818R30, the following rules apply:

(a)  the insurer must designate, in respect of the particular business for the year, the investment property owned by it at the beginning of the year that was insurance property of another insurance business in Canada for the preceding taxation year and that was, without reference to this section and section 818R30, used or held by it in the year in the course of carrying on the particular business;

(b)  the insurer must designate, in respect of the particular business for the year, the investment property, other than the investment property that it is required to designate under paragraph a in respect of another insurance business in Canada of the insurer for the year, where that paragraph a applies in respect of that other business, that it owned at the beginning of the year, that constituted insurance property of the particular business for the preceding taxation year and whose value for the year is not less than the amount by which the mean Canadian reserve liabilities of the insurer for the year in respect of the particular business exceeds the aggregate of

i.  the value for the year of the aggregate of the insurer’s investment property that it is required to designate under paragraph a in respect of the particular business for the year,

ii.  where the particular business is a life insurance business in Canada, the aggregate of the insurer’s mean policy loans for the year and one-half of the aggregate of the insurer’s outstanding premiums in respect of that insurance business in Canada, as determined at the end of the year and of the preceding taxation year for the purposes of the Superintendent of Financial Institutions,

iii.  where the particular business is an accident and sickness insurance business in Canada, one-half of the aggregate of the insurer’s outstanding premiums in respect of that insurance business in Canada, as determined at the end of the year and of the preceding taxation year for the purposes of the Superintendent of Financial Institutions, and

iv.  where the particular business is an insurance business in Canada, other than a life insurance business in Canada or an accident and sickness insurance business in Canada, one-half of the aggregate of

(1)  the aggregate of the insurer’s deferred acquisition expenses and premiums receivable, to the extent that those amounts are included in its Canadian reserve liabilities, in respect of that insurance business in Canada, as determined at the end of the preceding taxation year for the purposes of the Superintendent of Financial Institutions, and

(2)  the aggregate of the insurer’s deferred acquisition expenses or premiums receivable, to the extent that those amounts are included in its Canadian reserve liabilities, in respect of that insurance business in Canada, as determined at the end of the year for the purposes of the Superintendent of Financial Institutions;

(c)  the insurer must designate, in respect of the particular business for the year, the investment property, other than the investment property that it designated or that is required to be designated under paragraph a or b for the year, that it owns at any time in the year and whose value for the year is not less than the amount by which the amount of the excess amount determined under paragraph b in respect of the particular business for the year exceeds the value for the year of the aggregate of the insurance property in the preceding taxation year in respect of the particular business, that the insurer is required to designate for the year, under paragraph b, in respect of the particular business;

(d)  the insurer must designate, in respect of the particular business for the year, the investment property, other than the investment property that it designated or is required to designate under any of paragraphs a to c for the year, that it owns at any time in the year and whose value for the year is not less than the amount by which the insurer’s Canadian investment fund for the year exceeds the value for the year of the aggregate of the investment property that it designated or is required to designate under any of paragraphs a to c for the year in respect of all the insurance businesses in Canada;

(e)  the insurer is deemed to have designated for the year the property or a portion thereof, used or held by it in the year in the course of carrying on an insurance business in Canada, determined without reference to this section and section 818R30, that is not included in a segregated fund and is owned by the insurer at any time in the year, excluding investment property; and

(f)  where the insurer fails to designate property that was required to be designated for the year under paragraphs a to d, the Minister may, for the purposes of those paragraphs and despite section 818R41, designate on behalf of the insurer the property owned by it at any time in the year and, in such case, the property so designated by the Minister is deemed to have been designated by the insurer for the year, except that the value for the year of the aggregate of the designated property may not exceed the value that was required to be designated by the insurer under those paragraphs.

s. 818R30; O.C. 3926-80, s. 31; R.R.Q., 1981, c. I-3, r. 1, s. 818R30; O.C. 91-94, s. 74; O.C. 1463-2001, s. 84; O.C. 1470-2002, s. 56; O.C. 134-2009, s. 1.