I-3 - Taxation Act

Section 1140.1 Disposition versions

2006-03-01

1140.1. In this Part, the paid-up capital of an authorized foreign bank for a taxation year is equal to the aggregate of

(a)  10% of the aggregate of all amounts, each of which is the risk-weighted amount at the end of the year of an on-balance sheet asset of the bank or of an off-balance sheet exposure of the bank in respect of its Canadian banking business that the bank would be required to report under the OSFI risk-weighting guidelines if those guidelines applied and required a report at that time; and

(b)  the aggregate of all amounts, each of which is an amount at the end of the year in respect of the bank’s Canadian banking business that

i.  if the bank were a bank listed in Schedule II to the Bank Act (Statutes of Canada, 1991, chapter 46), would be required under the risk-based capital adequacy guidelines issued by the Superintendent of Financial Institutions of Canada and applicable at that time to be deducted from the bank’s capital in determining the amount of capital available to satisfy the Superintendent’s requirement that capital equal a particular proportion of risk-weighted assets and exposures, and

ii.  is not an amount in respect of a loss protection facility required to be deducted from capital under the guidelines of the Superintendent of Financial Institutions of Canada respecting asset securitization applicable at that time.

2004, c. 8, s. 208.