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

Section 818r56 Disposition versions

2023-09-26

818R56. The amount to which the first paragraph of section 818R55 refers in respect of an insurer at the end of a taxation year is equal to the greater of

(a)  the amount determined by the formula

{G – (0.9 × H) – [I – (0.9 × J)] + K + L} × (E/F);

(b)  the amount determined by the formula

(G – H + I + B) × (E / F).

In the formulas in the first paragraph,

(a)  A is 8% of the amount determined by the formula in the first paragraph of section 818R55;

(b)  B is the aggregate of all amounts each of which is the 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;

(c)  C is the aggregate of all amounts each of which is the amount of an item reported as an asset that is owned by the insurer at the end of the year and is a share of the capital stock of, or a debt owing to the insurer by, a financial institution affiliated with the insurer;

(d)  D is the aggregate of all amounts each of which is the amount at the end of the year of a debt incurred or assumed by the insurer in respect of the acquisition of an asset described in paragraph c or another property for which such an asset is a substituted property;

(e)  E is the amount of the insurer’s weighted Canadian liabilities at the end of the year;

(f)  F is the amount of the insurer’s weighted total liabilities at the end of the year;

(g)  G is the aggregate of all amounts each of which is the amount of an item reported as an asset of the insurer at the end of the year, other than an item that at no time in the year was used or held by the insurer in the course of carrying on an insurance business;

(h)  H is the aggregate of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that is

i.  if no portion of the contractual service margin for the group is in respect of a risk under a segregated fund policy, the contractual service margin for the group, or

ii.  in any other case, the amount that would be the contractual service margin for the group if the contractual service margin were determined without taking into account any portion that is in respect of the reinsurance of a risk under a segregated fund policy;

(i)  I is the aggregate of all amounts each of which is the amount of an item reported as a liability of the insurer at the end of the year in respect of an insurance business carried on by the insurer in the year (other than policyholders’ liabilities and a liability that was at any time in the year connected with an asset that was not used or held by the insurer in the course of carrying on an insurance business at any time in the year);

(j)  J is the aggregate of all amounts each of which is the contractual service margin for a group of insurance contracts of the insurer at the end of the year (other than a group of segregated fund policies);

(k)  K is the aggregate of all amounts each of which is the amount of a deferred net gain of the insurer at the end of the year or the amount expressed as a negative number of a deferred net loss of the insurer as at the end of the year; and

(l)  L is the aggregate of all amounts each of which is the amount of an item reported by the insurer as at the end of the year as a general provision or allowance for impairment in respect of investment property of the insurer for the year.

s. 818R54; O.C. 1463-2001, s. 86; O.C. 134-2009, s. 1; S.Q. 2023, c. 19, s. 155.

2012-09-01

818R56. The amount to which the first paragraph of section 818R55 refers in respect of an insurer at the end of a taxation year is equal to the greater of

(a)  the amount determined by the formula

A + ((B – C + D) × (E / F)); and

(b)  the amount determined by the formula

(G – H + I + B) × (E / F).

In the formulas in the first paragraph,

(a)  A is 8% of the amount determined by the formula in the first paragraph of section 818R55;

(b)  B is the aggregate of all amounts each of which is the 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;

(c)  C is the aggregate of all amounts each of which is the amount of an item reported as an asset that is owned by the insurer at the end of the year and is a share of the capital stock of, or a debt owing to the insurer by, a financial institution affiliated with the insurer;

(d)  D is the aggregate of all amounts each of which is the amount at the end of the year of a debt incurred or assumed by the insurer in respect of the acquisition of an asset described in paragraph c or another property for which such an asset is a substituted property;

(e)  E is the amount of the insurer’s weighted Canadian liabilities at the end of the year;

(f)  F is the amount of the insurer’s weighted total liabilities at the end of the year;

(g)  G is the aggregate of all amounts each of which is the amount of an item reported as an asset of the insurer at the end of the year, other than an item that at no time in the year was used or held by the insurer in the course of carrying on an insurance business;

(h)  H is the aggregate of all amounts each of which is the amount of an item reported as a liability of the insurer at the end of the year in respect of an insurance business carried on by the insurer in the year, other than a liability that was at any time in the year connected with an asset that was not used or held by the insurer in the course of carrying on an insurance business at any time in the year; and

(i)  I is the aggregate of all amounts each of which is an amount of an item reported by the insurer at the end of the year as a general provision or allowance for impairment.

s. 818R54; O.C. 1463-2001, s. 86; O.C. 134-2009, s. 1.