I-3 - Taxation Act

Section 832.4 Disposition versions

2006-03-01

832.4. For the purposes of Division II of Chapter II of Title III of Book III, sections 130 and 130.1 and the regulations made under paragraph a of section 130, where section 832.3 applies in respect of a transfer of depreciable property by an insurer not resident in Canada to a prescribed corporation for the purposes of subparagraph b of the first paragraph of section 832.3, where the provisions of sections 521 to 526 and 528 are not required to be applied in respect of the transfer, and where the capital cost to the insurer of the depreciable property exceeds its proceeds of disposition therefor, the following rules apply:

(a)  the capital cost of the depreciable property to the corporation is deemed to be the capital cost thereof to the insurer;

(b)  the excess is deemed to have been allowed to the corporation as depreciation in respect of the property under regulations made under paragraph a of section 130 in computing its income for taxation years ending before the transfer.

1990, c. 59, s. 314; 1997, c. 3, s. 71.