I-3 - Taxation Act

Section 805 Disposition versions

2010-04-20

805. The deposit insurance corporation defined in paragraph b of section 804 qualifies as such for a taxation year only if it was incorporated primarily to provide or administer a stabilization, liquidity or mutual aid fund for a savings and credit union and to assist in the payment of any losses suffered by the members of such a union in liquidation and if throughout the year it was a Canadian corporation to which the cost amount of all its property, other than a debt obligation of, or a share of the capital stock of, a member institution issued by the member institution at a time when it was in financial difficulty, was at least 50% of the cost amount of the following property:

(a)  bonds, debentures, notes, hypothecary claims, mortgages or similar obligations hereinafter called “obligations” issued or guaranteed by the Gouvernement du Québec, the Government of Canada or of another province, by a mandatary of any of such governments, by a Canadian municipality or by a municipal or public body performing a function of government in Canada, by a corporation, commission or association not less than 90% of the shares, capital or property of which is owned by the State, Her Majesty in right of a province, other than Québec, or a Canadian municipality, or by a wholly-controlled subsidiary of such a corporation, commission or association, or by an educational institution or hospital centre if, in this last case, repayment of the principal amount thereof and payment of the interest thereon is to be made or is guaranteed or otherwise secured by the government of a province;

(b)  any deposit, deposit certificate or guaranteed investment certificate with a bank, with a corporation licensed or otherwise authorized by or under the laws of Canada or a province to carry on in Canada or in a province the business of offering to the public its services as trustee, or with a central or a savings and credit union that is a member of the Canadian Payments Association or a savings and credit union that is a member or shareholder of a central that is itself a member of the Canadian Payments Association;

(c)  any money of the corporation; and

(d)  in relation to a particular deposit insurance corporation, a debt obligation and a share of the capital stock of a subsidiary wholly-owned corporation of the particular corporation where the subsidiary is deemed, under section 806.1, to be a deposit insurance corporation.

However, in applying the first paragraph with regard to the 1975 taxation year, the words “throughout the year” therein are replaced by the words “on the last day of the year”.

1975, c. 22, s. 218; 1977, c. 5, s. 14; 1984, c. 15, s. 181; 1989, c. 77, s. 90; 1990, c. 59, s. 302; 1993, c. 16, s. 298; 1996, c. 39, s. 221; 1997, c. 3, s. 71; 1998, c. 16, s. 188; 2001, c. 7, s. 116; 2005, c. 1, s. 194; 2010, c. 5, s. 78.

2006-03-01

805. The deposit insurance corporation defined in paragraph b of section 804 qualifies as such for a taxation year only if it was incorporated primarily to provide or administer a stabilization, liquidity or mutual aid fund for a savings and credit union and to assist in the payment of any losses suffered by the members of such a union in liquidation and if throughout the year it was a Canadian corporation to which the cost amount of all its property, other than a debt obligation of, or a share of the capital stock of, a member institution issued by the member institution at a time when it was in financial difficulty, was at least 50% of the cost amount of property which was

(a)  bonds, debentures, notes, hypothecary claims, mortgages or similar obligations hereinafter called “obligations” issued or guaranteed by the Gouvernement du Québec, the Government of Canada or of another province, by a mandatary of any of such governments, by a Canadian municipality or by a municipal or public body performing a function of government in Canada, by a corporation, commission or association not less than 90% of the shares, capital or property of which is owned by the State, Her Majesty in right of a province, other than Québec, or a Canadian municipality, or by a wholly-controlled subsidiary of such a corporation, commission or association, or by an educational institution or hospital centre if, in this last case, repayment of the principal amount thereof and payment of the interest thereon is to be made or is guaranteed or otherwise secured by the government of a province;

(b)  any deposit, deposit certificate or guaranteed investment certificate with a bank, with a corporation licensed or otherwise authorized by or under the laws of Canada or a province to carry on in Canada or in a province the business of offering to the public its services as trustee, or with a central or a savings and credit union that is a member of the Canadian Payments Association or a savings and credit union that is a member or shareholder of a central that is itself a member of the Canadian Payments Association;

(c)  any money of the corporation; and

(d)  in relation to a particular deposit insurance corporation, a debt obligation and a share of the capital stock of a subsidiary wholly-owned corporation of the particular corporation where the subsidiary is deemed, under section 806.1, to be a deposit insurance corporation.

However, in applying the first paragraph with regard to the 1975 taxation year, the words “throughout the year” therein are replaced by the words “on the last day of the year”.

1975, c. 22, s. 218; 1977, c. 5, s. 14; 1984, c. 15, s. 181; 1989, c. 77, s. 90; 1990, c. 59, s. 302; 1993, c. 16, s. 298; 1996, c. 39, s. 221; 1997, c. 3, s. 71; 1998, c. 16, s. 188; 2001, c. 7, s. 116; 2005, c. 1, s. 194.