I-3 - Taxation Act

Section 838 Disposition versions

2006-03-01

838. Where in a taxation year ending after 31 December 1968 but before 1 January 1978, an insurer carried on a life insurance business in Canada and an insurance business in a country other than Canada, the insurer did not make an election under section 825, as it read for that year, and the ratio of the value for the year of the insurer’s specified Canadian assets to its Canadian investment fund for the year exceeded one, each of the amounts included or deducted as follows in respect of the year shall be multiplied by that ratio:

(a)  under paragraph c or d of section 21.26 or paragraph a or c of section 21.27, in determining the amortized cost of a debt obligation to the insurer; or

(b)  under paragraph c or d of the definition of “tax basis” in section 851.22.7 or paragraph c or d of section 851.22.8, in determining the tax basis of a debt obligation to the insurer.

For the purposes of this section, the expressions “specified Canadian assets”, “Canadian investment fund for a taxation year” and “value for a taxation year” have the meaning assigned by the regulations.

1977, c. 26, s. 89; 1978, c. 26, s. 151; 1990, c. 59, s. 316; 1996, c. 39, s. 231.