I-3 - Taxation Act

Section 851.21 Disposition versions

2009-05-15

851.21. If the trustee of a segregated fund trust has made an election referred to in the first paragraph of section 851.20, the following rules apply:

(a)  the trustee must allocate to any policyholder who withdraws, at the particular time referred to in that first paragraph, all or part of his interest in a segregated fund policy relating to the trust, the amount of any capital gain or capital loss resulting from the disposition referred to in that first paragraph to the extent that the amount of benefits payable to that policyholder under his policy at that time is affected by the capital gain or capital loss in respect of property held by the trust at that time;

(b)  the allocation mentioned in paragraph a is deemed to have been made immediately before the withdrawal referred to in that paragraph;

(c)  any capital gain that is not allocated in accordance with paragraph a is deemed to be allocated in accordance with the terms and conditions of the segregated fund policy; and

(d)  any capital loss that is not allocated in accordance with paragraph a is deemed to be a non-deductible loss for each policyholder to the extent that the benefits payable under his policy would be affected by that loss.

1978, c. 26, s. 165; 1996, c. 39, s. 273; 2009, c. 5, s. 354.

2006-03-01

851.21. Where the trustee of a segregated fund trust has made the election provided for in subsection 1 of section 851.20, the following rules apply:

(a)  the trustee must allocate to any policyholder who withdraws, at the particular time referred to in the said subsection, all or part of his interest in a segregated fund policy relating to the trust, the amount of any capital gain or capital loss resulting from the disposition referred to therein to the extent that the amount of benefits payable to that policyholder under his policy at that time is affected by the capital gain or capital loss in respect of property held by the trust at that time;

(b)  the allocation mentioned in paragraph a is deemed to have been made immediately before the withdrawal referred to therein;

(c)  any capital gain that is not allocated in accordance with paragraph a is deemed to be allocated in accordance with the terms and conditions of the segregated fund policy; and

(d)  any capital loss that is not allocated in accordance with paragraph a is deemed to be a non-deductible loss for each policyholder to the extent that the benefits payable under his policy would be affected by that loss.

1978, c. 26, s. 165; 1996, c. 39, s. 273.