I-3 - Taxation Act

Section 1175.4.1 Disposition versions

2021-01-01

1175.4.1. (Repealed).

2002, c. 9, s. 138; 2009, c. 5, s. 565; 2019, c. 14, s. 466.

2009-05-15

1175.4.1. Subject to sections 1175.4.2 to 1175.4.4, a life insurer carrying on a recognized business in a taxation year may deduct from its tax payable for the year under this Part, computed before the application of this section and section 1175.5, the amount obtained by multiplying the amount of that tax by the product determined by the formula

[(A - B)/A] × (C/D).

In the formula provided for in the first paragraph,

(a)  A is the proportion of the life insurer’s total payroll for the taxation year that 365 is of the number of days in the taxation year;

(b)  B is

i.  except where subparagraph ii or iii applies, the proportion of the life insurer’s total payroll for its taxation year, in this section referred to as the “base year”, that precedes the taxation year in which the life insurer began carrying on eligible activities, in respect of a major investment project relating to a recognized business, that 365 is of the number of days in the base year,

ii.  where the base year has fewer than 183 days and the life insurer has a taxation year, preceding the base year, that has more than 182 days, the amount that would be determined under subparagraph i if it applied to the life insurer’s total payroll for its last taxation year, preceding the base year, that has more than 182 days, or

iii.  where the taxation year in which the life insurer began carrying on eligible activities, in respect of a major investment project relating to a recognized business, is its first taxation year, an amount equal to zero;

(c)  C is the number of days in the life insurer’s eligibility period for the taxation year, in respect of a major investment project relating to a recognized business; and

(d)  D is the number of days in the taxation year.

However, the amount that a life insurer may deduct under the first paragraph for a particular taxation year may not exceed the amount by which its tax payable under this Part for the particular year, computed before the application of this section and section 1175.5 exceeds

(a)  except where subparagraph b or c applies, the proportion of the tax payable under this Part by the life insurer for the base year, computed before the application of section 1175.5, that the number of days in the particular year is of the number of days in the base year,

(b)  where the base year has fewer than 183 days and the life insurer has a taxation year, preceding the base year, that has more than 182 days, the amount that would be determined under subparagraph a if it applied to the life insurer’s tax payable under this Part, computed before the application of section 1175.5, for its last taxation year, preceding the base year, that has more than 182 days, or

(c)  where the taxation year in which the life insurer began carrying on eligible activities, in respect of a major investment project relating to a recognized business, is its first taxation year, zero.

2002, c. 9, s. 138; 2009, c. 5, s. 565.

2006-03-01

1175.4.1. Subject to sections 1175.4.2 and 1175.4.3, a life insurer carrying on a recognized business in a taxation year may deduct from its tax payable for the year under this Part, computed before the application of this section and section 1175.5, the amount obtained by multiplying the amount of that tax by the product determined by the formula

[(A − B) / A] × (C / D).

In the formula provided for in the first paragraph,

(a)  A is the proportion of the life insurer’s total payroll for the taxation year that 365 is of the number of days in the taxation year;

(b)  B is

i.  except where subparagraph ii or iii applies, the proportion of the life insurer’s total payroll for its taxation year, in this section referred to as the “base year”, that precedes the taxation year in which the life insurer began carrying on eligible activities, in respect of a major investment project relating to a recognized business, that 365 is of the number of days in the base year,

ii.  where the base year has fewer than 183 days and the life insurer has a taxation year, preceding the base year, that has more than 182 days, the amount that would be determined under subparagraph i if it applied to the life insurer’s total payroll for its last taxation year, preceding the base year, that has more than 182 days, or

iii.  where the taxation year in which the life insurer began carrying on eligible activities, in respect of a major investment project relating to a recognized business, is its first taxation year, an amount equal to zero;

(c)  C is the number of days in the life insurer’s eligibility period for the taxation year, in respect of a major investment project relating to a recognized business; and

(d)  D is the number of days in the taxation year.

However, the amount that a life insurer may deduct under the first paragraph for a particular taxation year may not exceed the amount by which its tax payable under this Part for the particular year, computed before the application of this section and section 1175.5 exceeds

(a)  except where subparagraph b or c applies, the proportion of the tax payable under this Part by the life insurer for the base year, computed before the application of section 1175.5, that the number of days in the particular year is of the number of days in the base year,

(b)  where the base year has fewer than 183 days and the life insurer has a taxation year, preceding the base year, that has more than 182 days, the amount that would be determined under subparagraph a if it applied to the life insurer’s tax payable under this Part, computed before the application of section 1175.5, for its last taxation year, preceding the base year, that has more than 182 days, or

(c)  where the taxation year in which the life insurer began carrying on eligible activities, in respect of a major investment project relating to a recognized business, is its first taxation year, zero.

2002, c. 9, s. 138.