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

Section 818r57 Disposition versions

2023-09-26

818R57. The amount to which paragraph b of section 818R54 refers in respect of an insurer at the end of a taxation year is equal to the aggregate of

(a)  the amount of the insurer’s Canadian reserve liabilities at the end of the year; and

(b)  the greatest of

i.  the aggregate of

(1)  8% of the amount described in paragraph a, and

(2)  the aggregate of all amounts each of which is an amount of a deferred realized net gain or an amount expressed as a negative number of a deferred realized net loss of the insurer at the end of the year in respect of an insurance business carried on by the insurer in Canada,

ii.  the amount by which the aggregate of the following amounts exceeds the aggregate of all amounts each of which is an amount described in any of subparagraphs ii to v of paragraph a of subsection 4 of section 219 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) in respect of the insurer at the end of the year:

(1)  the amount of the insurer’s surplus funds derived from operations at the end of its preceding taxation year,

(2)  the aggregate described in subparagraph 2 of subparagraph i, to the extent that it is not included in the amount described in subparagraph 1, and

(3)  the aggregate of all amounts in respect of which the insurer made an election under subsection 4 or 5.2 of section 219 of the Income Tax Act, each of which is an amount included in the aggregate determined in respect of the insurer at the end of its preceding taxation year under subparagraph i.1 of paragraph a of subsection 4 of that section 219, and

iii.  the aggregate of

(1)  the amount of the insurer’s attributed surplus for the year, and

(2)  where the amount described in subparagraph 1 was determined without the taxpayer electing under paragraph a of the definition of “attributed surplus” in section 818R53, the amount described in subparagraph 2 of subparagraph i.

s. 818R55; O.C. 1463-2001, s. 86; O.C. 134-2009, s. 1; O.C. 701-2013, s. 33; S.Q. 2023, c. 19, s. 156.

2013-07-03

818R57. The amount to which paragraph b of section 818R54 refers in respect of an insurer at the end of a taxation year is equal to the aggregate of

(a)  the amount by which the amount of the insurer’s Canadian reserve liabilities at the end of the year exceeds the aggregate of

i.  the total of the insurer’s Canadian outstanding premiums and policy loans at the end of the year, to the extent that each of those amounts is in respect of policies referred to in subparagraphs i to iii of subparagraph a of the second paragraph of section 818R53.2 and was not otherwise deducted in computing the amount of the insurer’s Canadian reserve liabilities at the end of the year, and

ii.  the amount of the insurer’s deferred acquisition expenses at the end of the year in respect of its property and casualty insurance business carried on in Canada; and

(b)  the greatest of

i.  the aggregate of

(1)  8% of the amount described in paragraph a, and

(2)  the aggregate of all amounts each of which is an amount of a deferred realized net gain or an amount expressed as a negative number of a deferred realized net loss of the insurer at the end of the year in respect of an insurance business carried on by the insurer in Canada,

ii.  the amount by which the aggregate of the following amounts exceeds the aggregate of all amounts each of which is an amount described in any of subparagraphs ii to v of paragraph a of subsection 4 of section 219 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) in respect of the insurer at the end of the year:

(1)  the amount of the insurer’s surplus funds derived from operations at the end of its preceding taxation year,

(2)  the aggregate described in subparagraph 2 of subparagraph i, to the extent that it is not included in the amount described in subparagraph 1, and

(3)  the aggregate of all amounts in respect of which the insurer made an election under subsection 4 or 5.2 of section 219 of the Income Tax Act, each of which is an amount included in the aggregate determined in respect of the insurer at the end of its preceding taxation year under subparagraph i.1 of paragraph a of subsection 4 of that section 219, and

iii.  the aggregate of

(1)  the amount of the insurer’s attributed surplus for the year, and

(2)  where the amount described in subparagraph 1 was determined without the taxpayer electing under paragraph a of the definition of “attributed surplus” in section 818R53, the amount described in subparagraph 2 of subparagraph i.

s. 818R55; O.C. 1463-2001, s. 86; O.C. 134-2009, s. 1; O.C. 701-2013, s. 33.

2012-09-01

818R57. The amount to which paragraph b of section 818R54 refers in respect of an insurer at the end of a taxation year is equal to the aggregate of

(a)  the amount by which the amount of the insurer’s Canadian reserve liabilities at the end of the year exceeds the aggregate of

i.  the total of the insurer’s Canadian outstanding premiums, policy loans and reinsurance recoverables at the end of the year, to the extent that each of those amounts is in respect of policies referred to in paragraphs a to c of the definition of “Canadian reserve liabilities” in section 818R53 and was not otherwise deducted in computing the amount of the insurer’s Canadian reserve liabilities at the end of the year, and

ii.  the amount of the insurer’s deferred acquisition expenses at the end of the year in respect of its property and casualty insurance business carried on in Canada; and

(b)  the greatest of

i.  the aggregate of

(1)  8% of the amount described in paragraph a, and

(2)  the aggregate of all amounts each of which is an amount of a deferred realized net gain or an amount expressed as a negative number of a deferred realized net loss of the insurer at the end of the year in respect of an insurance business carried on by the insurer in Canada,

ii.  the amount by which the aggregate of the following amounts exceeds the aggregate of all amounts each of which is an amount described in any of subparagraphs ii to v of paragraph a of subsection 4 of section 219 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) in respect of the insurer at the end of the year:

(1)  the amount of the insurer’s surplus funds derived from operations at the end of its preceding taxation year,

(2)  the aggregate described in subparagraph 2 of subparagraph i, to the extent that it is not included in the amount described in subparagraph 1, and

(3)  the aggregate of all amounts in respect of which the insurer made an election under subsection 4 or 5.2 of section 219 of the Income Tax Act, each of which is an amount included in the aggregate determined in respect of the insurer at the end of its preceding taxation year under subparagraph i.1 of paragraph a of subsection 4 of that section 219, and

iii.  the aggregate of

(1)  the amount of the insurer’s attributed surplus for the year, and

(2)  where the amount described in subparagraph 1 was determined without the taxpayer electing under paragraph a of the definition of “attributed surplus” in section 818R53, the amount described in subparagraph 2 of subparagraph i.

s. 818R55; O.C. 1463-2001, s. 86; O.C. 134-2009, s. 1.