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I-3 - Taxation Act
Section 840
Disposition versions
840. The amounts that a life insurer may deduct for the year include:
(a) any amount that the insurer claims as a policy reserve for the year in respect of its groups of life insurance contracts in Canada at the end of the year, not exceeding the aggregate of amounts that the insurer is allowed by regulation to deduct in respect of those groups; and
(a.1) (paragraph repealed);
(a.2) the amount included under paragraph a.1 of section 844 in computing the insurer’s income for the preceding taxation year;
(b) (paragraph repealed);
(c) (paragraph repealed);
(d) (paragraph repealed).
840. The amounts that a life insurer may deduct for the year include:
(a) any amount that the insurer claims as a policy reserve for the year in respect of its life insurance policies, not exceeding the aggregate of amounts that the insurer is allowed by regulation to deduct in respect of the policies;
(a.1) any amount that the insurer claims as a reserve for the year in respect of claims that were received by the insurer before the end of the year under its life insurance policies and that are unpaid at the end of the year, not exceeding the aggregate of amounts that the insurer is allowed by regulation to deduct in respect of the policies; and
(a.2) the amount included under paragraph a.1 of section 844 in computing the insurer’s income for the preceding taxation year;
(b) (paragraph repealed);
(c) (paragraph repealed);
(d) (paragraph repealed).
840. The amounts that a life insurer may deduct for the year include:
(a) any amount that the insurer claims as a policy reserve for the year in respect of its life insurance policies, not exceeding the aggregate of amounts that the insurer is allowed by regulation to deduct in respect of the policies;
(a.1) any amount that the insurer claims as a reserve for the year in respect of claims that were received by the insurer before the end of the year under its life insurance policies and that are unpaid at the end of the year, not exceeding the aggregate of amounts that the insurer is allowed by regulation to deduct in respect of the policies;
(a.2) the amount included under paragraph a.1 of section 844 in computing the insurer’s income for the preceding taxation year;
(b) (paragraph repealed);
(c) (paragraph repealed); and
(d) an amount as a reserve for policy dividends that will become payable by the insurer in the following taxation year equal to the least of
i. that portion of policy dividends that has accrued in the year or a preceding taxation year to or for the benefit of participating life insurance policyholders of the insurer, to the extent that an amount in respect thereof has not been included, either explicitly or implicitly, in the calculation of the amount deductible by the insurer for the year under paragraph a, and, for the purposes of this subparagraph, a policy dividend in respect of a life insurance policy is deemed to accrue in equal daily amounts between anniversary dates of the policy,
ii. 110% of the amount paid or unconditionally credited in the taxation year following the year in respect of the portion referred to in subparagraph i of policy dividends that has accrued in the year or a preceding taxation year, and
iii. the excess, if any, of the amount contemplated in subparagraph ii of paragraph a of section 841 for the year over the amount contemplated in subparagraph i of the said paragraph for the year.
