I-3 - Taxation Act

Section 851.22.22.5 Disposition versions

2023-09-26

851.22.22.5. If a taxpayer has, in a winding-up to which section 556 has applied, been wound up into another corporation (in this section referred to as the “parent”), and immediately after the winding-up the parent is an insurer, in applying sections 851.22.22.3 and 851.22.22.4 in computing the income of the taxpayer and of the parent for the particular taxation years that end on or after the first day (in this section referred to as the “start day”) on which assets of the taxpayer were distributed to the parent on the winding-up, the following rules apply:

(a)  the parent is, on and after the start day, deemed to be the same corporation as and a continuation of the taxpayer in respect of

i.  any amount included under section 851.22.22.1 or deducted under section 851.22.22.2 by the taxpayer in computing the taxpayer’s income for the taxpayer’s transition year,

ii.  any amount deducted under section 851.22.22.3 or included under section 851.22.22.4 in computing the taxpayer’s income for a taxation year of the taxpayer that begins before the start day, and

iii.  any amount that would–in the absence of this section and if the taxpayer existed and was an insurer on each day that is the start day or a subsequent day and on which the parent is an insurer–be required to be deducted under section 851.22.22.3 or included under section 851.22.22.4, in respect of any of those days, in computing the taxpayer’s income for the taxpayer’s transition year; and

(b)  the taxpayer is, in respect of each of the taxpayer’s particular taxation years, to determine the number of days that is referred to in subparagraph b of the second paragraph of sections 851.22.22.3 and 851.22.22.4 without reference to the start day and days after the start day.

2010, c. 25, s. 99; 2023, c. 19, s. 90.

2010-10-27

851.22.22.5. If a taxpayer has, in a winding-up to which section 556 has applied, been wound up into another corporation (in this section referred to as the “parent”), and immediately after the winding-up the parent is a financial institution, in applying sections 851.22.22.3 and 851.22.22.4 in computing the income of the taxpayer and of the parent for the particular taxation years that end on or after the first day (in this section referred to as the “start day”) on which assets of the taxpayer were distributed to the parent on the winding-up, the following rules apply:

(a)  the parent is, on and after the start day, deemed to be the same corporation as and a continuation of the taxpayer in respect of

i.  any amount included under section 851.22.22.1 or deducted under section 851.22.22.2 by the taxpayer in computing the taxpayer’s income for the taxpayer’s transition year,

ii.  any amount deducted under section 851.22.22.3 or included under section 851.22.22.4 in computing the taxpayer’s income for a taxation year of the taxpayer that begins before the start day, and

iii.  any amount that would–in the absence of this section and if the taxpayer existed and was a financial institution on each day that is the start day or a subsequent day and on which the parent is a financial institution–be required to be deducted under section 851.22.22.3 or included under section 851.22.22.4, in respect of any of those days, in computing the taxpayer’s income for the taxpayer’s transition year; and

(b)  the taxpayer is, in respect of each of the taxpayer’s particular taxation years, to determine the number of days that is referred to in subparagraph b of the second paragraph of sections 851.22.22.3 and 851.22.22.4 without reference to the start day and days after the start day.

2010, c. 25, s. 99.