I-3 - Taxation Act

Section 832.9 Disposition versions

2015-10-26

832.9. Subparagraphs a to i of the second paragraph of section 832.3 and sections 832.4 and 832.5 apply in respect of the transfer referred to in subparagraph b, where

(a)  an insurer resident in Canada, in this section referred to as the “transferor”, has ceased, at any time in a taxation year, to carry on all or substantially all of an insurance business carried on by it in Canada in that year;

(b)  the transferor has, at that time or within 60 days after that time, transferred to a corporation resident in Canada (in this section referred to as the “transferee”) that is a prescribed corporation for the purposes of subparagraph b of the first paragraph of section 832.3 and that, immediately after that time, began to carry on the insurance business in Canada referred to in subparagraph a for consideration that includes shares of the capital stock of the transferee, all or substantially all of the property (in section 832.3 referred to as the “transferred property”) that is,

i.  where the transferor is a life insurer that carries on an insurance business in Canada and elsewhere in the year, property that is owned by it at that time and that was designated insurance property in relation to the business for the taxation year that, because of the election referred to in subparagraph d, ended immediately before that time, or

ii.  in any other case, property owned by the transferor at that time and used or held by it in the year in the course of carrying on that insurance business in Canada in the year;

(c)  the transferee has, at that time or within 60 days after that time, assumed or reinsured all or substantially all of the obligations of the transferor that arose in the course of carrying on the insurance business in Canada referred to in subparagraph a; and

(d)  the transferor and the transferee have made a valid election under paragraph d of subsection 11.94 of section 138 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) in respect of the transfer.

In addition, where the first paragraph applies in respect of the transfer referred to in subparagraph b of that paragraph, the prescribed form along with a copy of every document sent to the Minister of Revenue of Canada in respect of the transfer, in connection with the election referred to in subparagraph d of the first paragraph, shall be sent to the Minister on or before the earliest of the filing-due dates of the transferor and the transferee for the taxation year in which the transactions to which the election relates occurred.

1990, c. 59, s. 314; 1997, c. 3, s. 71; 1997, c. 31, s. 143; 1997, c. 85, s. 197; 1998, c. 16, s. 199; 2000, c. 5, s. 293; 2004, c. 8, s. 162; 2009, c. 5, s. 350; 2015, c. 24, s. 119.

2009-05-15

832.9. Subparagraphs a to i of the second paragraph of section 832.3 and sections 832.4 and 832.5 apply in respect of the transfer referred to in subparagraph b, where

(a)  an insurer resident in Canada, in this section referred to as the “transferor”, has ceased, at any time in a taxation year, to carry on all or substantially all of an insurance business carried on by it in Canada in that year;

(b)  the transferor has, at that time or within 60 days after that time, transferred to a corporation resident in Canada, in this section referred to as the “transferee”, that is a subsidiary wholly-owned corporation of the transferor that, immediately after that time, began to carry on the insurance business in Canada referred to in subparagraph a for consideration that includes shares of the capital stock of the transferee, all or substantially all of the property, in section 832.3 referred to as the “transferred property”, that is,

i.  where the transferor is a life insurer that carries on an insurance business in Canada and elsewhere in the year, property that is owned by it at that time and that was designated insurance property in relation to the business for the taxation year that, because of the election referred to in subparagraph d, ended immediately before that time, or

ii.  in any other case, property owned by the transferor at that time and used or held by it in the year in the course of carrying on that insurance business in Canada in the year;

(c)  the transferee has, at that time or within 60 days after that time, assumed or reinsured all or substantially all of the obligations of the transferor that arose in the course of carrying on the insurance business in Canada referred to in subparagraph a; and

(d)  the transferor and the transferee have made a valid election under paragraph d of subsection 11.94 of section 138 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) in respect of the transfer.

In addition, where the first paragraph applies in respect of the transfer referred to in subparagraph b of that paragraph, the prescribed form along with a copy of every document sent to the Minister of Revenue of Canada in respect of the transfer, in connection with the election referred to in subparagraph d of the first paragraph, shall be sent to the Minister on or before the earliest of the filing-due dates of the transferor and the transferee for the taxation year in which the transactions to which the election relates occurred.

1990, c. 59, s. 314; 1997, c. 3, s. 71; 1997, c. 31, s. 143; 1997, c. 85, s. 197; 1998, c. 16, s. 199; 2000, c. 5, s. 293; 2004, c. 8, s. 162; 2009, c. 5, s. 350.

2006-03-01

832.9. Subparagraphs a to i of the second paragraph of section 832.3 and sections 832.4 and 832.5 apply in respect of the transfer referred to in subparagraph b, where

(a)  an insurer resident in Canada, in this section referred to as the “transferor”, has ceased, at any time in a taxation year, to carry on all or substantially all of an insurance business carried on by it in Canada in that year;

(b)  the transferor has, at that time or within 60 days after that time, transferred to a corporation resident in Canada, in this section referred to as the “transferee”, that is a subsidiary wholly-owned corporation of the transferor that, immediately after that time, began to carry on the insurance business in Canada referred to in subparagraph a for consideration that includes shares of the capital stock of the transferee, all or substantially all of the property, in section 832.3 referred to as the “transferred property”, that is,

i.  where the transferor is a life insurer that carries on an insurance business in Canada and elsewhere in the year, property that is owned by it at that time and that was designated insurance property in relation to the business for the taxation year that, because of subparagraph d of the second paragraph of section 832.3, ended immediately before that time, or

ii.  in any other case, property owned by the transferor at that time and used or held by it in the year in the course of carrying on that insurance business in Canada in the year;

(c)  the transferee has, at that time or within 60 days after that time, assumed or reinsured all or substantially all of the obligations of the transferor that arose in the course of carrying on the insurance business in Canada referred to in subparagraph a; and

(d)  the transferor and the transferee have made a valid election under paragraph d of subsection 11.94 of section 138 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) in respect of the transfer.

In addition, where the first paragraph applies in respect of the transfer referred to in subparagraph b of that paragraph, the prescribed form along with a copy of every document sent to the Minister of Revenue of Canada in respect of the transfer, in connection with the election referred to in subparagraph d of the first paragraph, shall be sent to the Minister on or before the earliest of the filing-due dates of the transferor and the transferee for the taxation year in which the transactions to which the election relates occurred.

1990, c. 59, s. 314; 1997, c. 3, s. 71; 1997, c. 31, s. 143; 1997, c. 85, s. 197; 1998, c. 16, s. 199; 2000, c. 5, s. 293; 2004, c. 8, s. 162.