I-3 - Taxation Act

Section 1175.6 Disposition versions

2010-10-27

1175.6. In this Part, the taxable capital employed in Québec of a life insurer that is resident in Canada at any time in a taxation year is, for the year, the amount determined by the formula

A − (B + C).

For the purposes of the formula in the first paragraph,

(a)  A is the amount obtained by multiplying the aggregate of the capital of the life insurer for the taxation year and the amount determined for the year in respect of the capital of its foreign insurance subsidiaries by the proportion that the Canadian reserve liabilities of the life insurer at the end of the taxation year is of the aggregate of its total reserve liabilities at the end of the year and the amount determined for the year in respect of the total reserve liabilities of its foreign insurance subsidiaries;

(b)  B is the life insurer’s capital allowance for the taxation year; and

(c)  C is that proportion of the amount by which the amount determined under subparagraph a for the taxation year exceeds the amount referred to in subparagraph b that the business carried on by the life insurer in Canada but not in Québec for the taxation year is of the aggregate of its business carried on in Canada for the taxation year, as determined in accordance with the regulations;

(d)  (subparagraph repealed).

1997, c. 14, s. 286; 2001, c. 53, s. 257; 2010, c. 25, s. 224.

2006-03-01

1175.6. In this Part, the taxable capital employed in Québec of a life insurer that is resident in Canada at any time in a taxation year is, for the year, the amount determined by the formula

(A + B) − (C + D).

For the purposes of the formula in the first paragraph,

(a)  A is the amount obtained by multiplying the aggregate of the capital of the life insurer for the taxation year and the amount determined for the year in respect of the capital of its foreign insurance subsidiaries by the proportion that the Canadian reserve liabilities of the life insurer at the end of the taxation year is of the aggregate of its total reserve liabilities at the end of the year and the amount determined for the year in respect of the total reserve liabilities of its foreign insurance subsidiaries;

(b)  B is the amount by which

i.  the amount of the reserves of the life insurer for the year, other than its reserves in respect of amounts payable out of segregated funds, that may reasonably be regarded as having been established in respect of its insurance businesses carried on in Canada, exceeds

ii.  the aggregate of

(1)  all amounts each of which is the amount of a reserve, other than a reserve described in paragraph a of section 840, to the extent that it is included in the amount determined under subparagraph i and is deducted in computing its income under Part I for the year,

(2)  all amounts each of which is the amount of a reserve described in paragraph a of section 840, to the extent that it is included in the amount determined under subparagraph i and is deductible under that paragraph a in computing its income under Part I for the year, and

(3)  all amounts each of which is the amount outstanding, including any interest accrued thereon, at the end of the year in respect of a policy loan, within the meaning of paragraph h of section 835, that was made by the life insurer, to the extent that it is deducted in computing an amount determined under subparagraph 2;

(c)  C is the life insurer’s capital allowance for the taxation year;

(d)  D is that proportion of the amount by which the aggregate of the amounts determined under subparagraphs a and b for the taxation year exceeds the amount referred to in subparagraph c that the business carried on by the life insurer in Canada but not in Québec for the taxation year is of the aggregate of its business carried on in Canada, as determined in accordance with the regulations.

1997, c. 14, s. 286; 2001, c. 53, s. 257.