I-3 - Taxation Act

Section 976.0.2 Disposition versions

2021-06-02

976.0.2. For the purposes of paragraph i of section 336 and sections 976 and 976.0.1, a particular amount is deemed to be a repayment made immediately before a particular time by a taxpayer in respect of a policy loan in respect of a life insurance policy if

(a)  the policy is issued after 31 December 2016;

(b)  the taxpayer disposes of a part of the taxpayer’s interest in the policy at the particular time;

(c)  subparagraph i of paragraph b.4 of section 966 applies to determine the proceeds of the disposition of the interest;

(d)  the particular amount is not

i.  otherwise a repayment by the taxpayer in respect of the policy loan, and

ii.  described in subparagraph 1 of subparagraph i of paragraph b.4 of section 966; and

(e)  the amount payable by the taxpayer in respect of the policy loan is reduced by the particular amount as a consequence of the disposition.

2019, c. 14, s. 288; 2021, c. 14, s. 114.

2019-06-19

976.0.2. For the purposes of paragraph i of section 336 and sections 976 and 976.0.1, a particular amount is deemed to be a repayment made at a particular time by a taxpayer in respect of a policy loan in respect of a life insurance policy if

(a)  the policy is issued after 31 December 2016;

(b)  the taxpayer disposes of a part of the taxpayer’s interest in the policy immediately after the particular time;

(c)  subparagraph i of paragraph b.4 of section 966 applies to determine the proceeds of the disposition of the interest;

(d)  the particular amount is not

i.  otherwise a repayment by the taxpayer in respect of the policy loan, and

ii.  described in subparagraph 1 of subparagraph i of paragraph b.4 of section 966; and

(e)  the amount payable by the taxpayer in respect of the policy loan is reduced by the particular amount as a consequence of the disposition.

2019, c. 14, s. 288.