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

Section 825r5 Disposition versions

2019-06-19

825R5. The positive or negative amount, as the case may be, that is required to be determined under this section in respect of an insurer for a taxation year in respect of particular property, for the purposes of subparagraph b of the second paragraph of section 825R2 and subparagraphs a, e and h of the second paragraph of section 825R4, is the amount established according to the following formula:

A – B.

In the formula in the first paragraph,

(a)  A is the total of the following amounts determined in respect of the particular property for the year, or that would be determined in respect of the particular property for the year if the particular property were designated insurance property of the insurer in respect of an insurance business in Canada for each taxation year in which the property was held by the insurer:

i.  the insurer’s gross investment income for the year derived from the particular property excluding taxable dividends that are or would be deductible in computing the insurer’s taxable income for the year under sections 738 to 745 or section 845 of the Act,

ii.  (subparagraph revoked),

iii.  the amounts that are or would be included in computing the insurer’s taxable capital gains for the year resulting from the disposition of the particular property,

iii.1.  the amounts that are or would be included under subparagraph b of the first paragraph of section 851.22.13 of the Act in respect of the particular property in computing the insurer’s income for the year,

iv.  the amounts that are or would be included in computing the insurer’s income for the year as gains from the disposition of the particular property, except where the particular property is capital property or a specified debt obligation within the meaning of section 851.22.1 of the Act,

v.  the amounts that are or would be included in computing the insurer’s income for the year in respect of the particular property under section 94 of the Act,

vi.  the amounts that are or would be included in computing the insurer’s income for the year in respect of the particular property under any of paragraphs d, d.1 and i of section 87 of the Act,

vii.  the amounts that are or would be included in computing the insurer’s income for the year in respect of the particular property under paragraphs c to g of section 330 or section 332.1 of the Act,

viii.  (subparagraph revoked);

ix.  any other amount that is or would be included in computing the insurer’s income for the year in respect of the particular property, other than under section 851.22.11 of the Act; and

(b)  B is the total of the following amounts determined in respect of the particular property for the year, or that would be so determined if the particular property were designated insurance property of the insurer in respect of an insurance business in Canada for each taxation year in which the property was held by the insurer:

i.  the amounts that are or would be included in computing the insurer’s allowable capital losses for the year resulting from the disposition of the particular property,

i.1.  the amounts that are or would be deductible under subparagraph c of the first paragraph of section 851.22.13 of the Act in respect of the particular property in computing the insurer’s income for the year,

ii.  the amounts that are or would be deductible in computing the insurer’s income for the year as losses from the disposition of the particular property, except where the particular property is capital property or a specified debt obligation within the meaning of section 851.22.1 of the Act,

iii.  (subparagraph revoked),

iv.  the amounts that are or would be deductible in computing the insurer’s income for the year under paragraph a of section 130 of the Act in respect of the capital cost of the particular property or under section 160 or 163 of the Act in respect of the interest paid or payable on borrowed money that is used to acquire the particular property,

v.  where the particular property is rental property or leasing property within the meaning of section 130R88 or 130R93 respectively, the amounts that are or would be deductible in computing the insurer’s income for the year in respect of expenses directly related to the earning of rental income from the particular property,

vi.  the amounts that are or would be deductible in computing the insurer’s income for the year as a reserve for doubtful or bad debts in respect of the particular property under any of sections 140, 140.2 and 141 of the Act,

vii.  the amounts that are or would be deductible in computing the insurer’s income for the year under any of sections 359 to 359.19, 362 to 418.12, 419.1 to 419.4 and 419.6 of the Act in respect of the particular property,

viii.  (subparagraph revoked);

ix.  any amount that is or would be deductible in computing the insurer’s income for the year in respect of any other expense directly related to the earning of gross investment income from the particular property.

s. 825R6; O.C. 91-94, s. 80; O.C. 35-96, s. 86; O.C. 1454-99, s. 39; O.C. 1463-2001, s. 91; O.C. 1149-2006, s. 41; O.C. 134-2009, s. 1; O.C. 390-2012, s. 47; S.Q. 2019, c. 14, s. 640.

2012-09-01

825R5. The positive or negative amount, as the case may be, that is required to be determined under this section in respect of an insurer for a taxation year in respect of particular property, for the purposes of subparagraph b of the second paragraph of section 825R2 and subparagraphs a, e and h of the second paragraph of section 825R4, is the amount established according to the following formula:

A – B.

In the formula in the first paragraph,

(a)  A is the total of the following amounts determined in respect of the particular property for the year, or that would be determined in respect of the particular property for the year if the particular property were designated insurance property of the insurer in respect of an insurance business in Canada for each taxation year in which the property was held by the insurer:

i.  the insurer’s gross investment income for the year derived from the particular property excluding taxable dividends that are or would be deductible in computing the insurer’s taxable income for the year under sections 738 to 745 or section 845 of the Act,

ii.  (subparagraph revoked),

iii.  the amounts that are or would be included in computing the insurer’s taxable capital gains for the year resulting from the disposition of the particular property,

iii.1.  the amounts that are or would be included under subparagraph b of the first paragraph of section 851.22.13 of the Act in respect of the particular property in computing the insurer’s income for the year,

iv.  the amounts that are or would be included in computing the insurer’s income for the year as gains from the disposition of the particular property, except where the particular property is capital property or a specified debt obligation within the meaning of section 851.22.1 of the Act,

v.  the amounts that are or would be included in computing the insurer’s income for the year in respect of the particular property under section 94 of the Act,

vi.  the amounts that are or would be included in computing the insurer’s income for the year in respect of the particular property under any of paragraphs d, d.1 and i of section 87 of the Act,

vii.  the amounts that are or would be included in computing the insurer’s income for the year in respect of the particular property under paragraphs c to g of section 330 or section 332.1 of the Act,

viii.  the amounts that are or would be included in computing the insurer’s income for the year in respect of the particular property under section 105 of the Act, and

ix.  any other amount that is or would be included in computing the insurer’s income for the year in respect of the particular property, other than under section 851.22.11 of the Act; and

(b)  B is the total of the following amounts determined in respect of the particular property for the year, or that would be so determined if the particular property were designated insurance property of the insurer in respect of an insurance business in Canada for each taxation year in which the property was held by the insurer:

i.  the amounts that are or would be included in computing the insurer’s allowable capital losses for the year resulting from the disposition of the particular property,

i.1.  the amounts that are or would be deductible under subparagraph c of the first paragraph of section 851.22.13 of the Act in respect of the particular property in computing the insurer’s income for the year,

ii.  the amounts that are or would be deductible in computing the insurer’s income for the year as losses from the disposition of the particular property, except where the particular property is capital property or a specified debt obligation within the meaning of section 851.22.1 of the Act,

iii.  (subparagraph revoked),

iv.  the amounts that are or would be deductible in computing the insurer’s income for the year under paragraph a of section 130 of the Act in respect of the capital cost of the particular property or under section 160 or 163 of the Act in respect of the interest paid or payable on borrowed money that is used to acquire the particular property,

v.  where the particular property is rental property or leasing property within the meaning of section 130R88 or 130R93 respectively, the amounts that are or would be deductible in computing the insurer’s income for the year in respect of expenses directly related to the earning of rental income from the particular property,

vi.  the amounts that are or would be deductible in computing the insurer’s income for the year as a reserve for doubtful or bad debts in respect of the particular property under any of sections 140, 140.2 and 141 of the Act,

vii.  the amounts that are or would be deductible in computing the insurer’s income for the year under any of sections 359 to 359.19, 362 to 418.12, 419.1 to 419.4 and 419.6 of the Act in respect of the particular property,

viii.  the amounts that are or would be deductible in computing the insurer’s income for the year in respect of the particular property under paragraph b of section 130 of the Act, and

ix.  any amount that is or would be deductible in computing the insurer’s income for the year in respect of any other expense directly related to the earning of gross investment income from the particular property.

s. 825R6; O.C. 91-94, s. 80; O.C. 35-96, s. 86; O.C. 1454-99, s. 39; O.C. 1463-2001, s. 91; O.C. 1149-2006, s. 41; O.C. 134-2009, s. 1; O.C. 390-2012, s. 47.