I-3 - Taxation Act

Section 927 Disposition versions

2012-05-09

927. (Repealed).

1972, c. 23, s. 687; 1991, c. 25, s. 131; 2012, c. 8, s. 149.

2006-03-01

927. A trust which surrenders, cancels, transfers or disposes in any other manner of its interest in a life insurance policy is deemed, for the purposes of section 926, to have disposed of each non-qualified investment that it is deemed to have acquired under section 933 by reason of payments under the policy.

For the purposes of the first paragraph, the proceeds of disposition are deemed to be equal to the amount by which the amount received by the trust by reason of such surrender, cancellation, transfer or other disposition of its interest in the life insurance policy exceeds the aggregate of the following amounts:

(a)  each amount paid by the trust under the policy or to acquire an interest in the policy and the payment of which is deemed not to be the acquisition of an investment that is a non-qualified investment, for the purposes of section 146 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), and

(b)  the cash surrender value, on 21 December 1966, of the interest of the trust in the policy on that date.

1972, c. 23, s. 687; 1991, c. 25, s. 131.