I-3 - Taxation Act

Section 842.1 Disposition versions

2006-03-01

842.1. For the purposes of paragraph b of section 842, an insurer may claim a deduction under section 160 or 163 in computing its income for a taxation year from carrying on its insurance business in Canada, in respect of

(a)  interest on borrowed money used to acquire designated insurance property for the year, or to acquire property for which designated insurance property for the year was substituted property, for the period in the year during which the designated insurance property was held by the insurer in relation to the business;

(b)  interest on amounts payable for designated insurance property for the year in respect of the business; and

(c)  interest on deposits received or other amounts held by the insurer that arose in connection with life insurance policies in Canada or with policies insuring Canadian risks;

(d)  (paragraph repealed).

1978, c. 26, s. 155; 1984, c. 15, s. 190; 1998, c. 16, s. 203; 2004, c. 8, s. 165.