I-3 - Taxation Act

Section 832 Disposition versions

2006-03-01

832. An insurer may deduct in computing its income derived for the taxation year from the carrying on of an insurance business, other than a life insurance business, any amount credited by it for the year or a preceding taxation year in respect of that business to one of its policyholders by way of a policy dividend, refund of premiums or refund of premium deposits.

Such amount is, however, deductible only if it is, during the year or within the ensuing 12 months:

(a)  paid or unconditionally credited to the policyholder; or

(b)  applied in discharge, in whole or in part, of a liability of the policyholder to pay premiums to the insurer;

(c)  (subparagraph repealed).

1972, c. 23, s. 623; 1990, c. 59, s. 309; 1994, c. 22, s. 279; 1996, c. 39, s. 273; 2001, c. 53, s. 165.