I-3 - Taxation Act

Section 838.1 Disposition versions

2023-09-26

838.1. The following rules apply in respect of a life insurer resident in Canada that has a designated foreign insurance business in a particular taxation year:

(a)  for the purpose of computing the insurer’s income or loss from carrying on an insurance business in Canada for the particular taxation year, the insurer’s insurance business carried on in Canada is deemed to include the insurance of the specified Canadian risks that are insured as part of the designated foreign insurance business;

(b)  for the purposes of paragraphs d to e of section 87, sections 818 and 825 and paragraph a of section 844, if, in the taxation year immediately preceding the particular taxation year, the designated foreign insurance business was not a designated foreign insurance business, the life insurer is deemed to have carried on the business in Canada in that preceding taxation year and to have deducted, in computing its income for that year, the maximum amounts to which it would have been entitled under sections 140, 140.1 and 140.2, the second paragraph of section 152 and paragraph a of section 840 in respect of the specified Canadian risks referred to in paragraph a if the designated foreign insurance business had been a designated foreign insurance business in that preceding taxation year; and

(c)  for the purposes of section 157.6.1 and paragraph a.2 of section 840,

i.  the insurer is deemed to have carried on the business in Canada in the taxation year immediately preceding the particular taxation year, and

ii.  the amounts that would have been prescribed in respect of the insurer for the purposes of paragraph e.1 of section 87 and paragraph a.1 of section 844 for that preceding year in respect of the insurance policies in respect of the specified Canadian risks referred to in paragraph a are deemed to have been included in computing its income for that preceding year.

2020, c. 16, s. 124; 2023, c. 19, s. 70.

2020-09-24

838.1. The following rules apply in respect of a life insurer resident in Canada that has a designated foreign insurance business in a particular taxation year:

(a)  for the purpose of computing the insurer’s income or loss from carrying on an insurance business in Canada for the particular taxation year, the insurer’s insurance business carried on in Canada is deemed to include the insurance of the specified Canadian risks that are insured as part of the designated foreign insurance business;

(b)  for the purposes of paragraphs d to e of section 87, sections 818 and 825 and paragraph a of section 844, if, in the taxation year immediately preceding the particular taxation year, the designated foreign insurance business was not a designated foreign insurance business, the life insurer is deemed to have carried on the business in Canada in that preceding taxation year and to have deducted, in computing its income for that year, the maximum amounts to which it would have been entitled under sections 140, 140.1 and 140.2, the second paragraph of section 152 and paragraphs a and a.1 of section 840 in respect of the specified Canadian risks referred to in paragraph a if the designated foreign insurance business had been a designated foreign insurance business in that preceding taxation year; and

(c)  for the purposes of section 157.6.1 and paragraph a.2 of section 840,

i.  the insurer is deemed to have carried on the business in Canada in the taxation year immediately preceding the particular taxation year, and

ii.  the amounts that would have been prescribed in respect of the insurer for the purposes of paragraph e.1 of section 87 and paragraph a.1 of section 844 for that preceding year in respect of the insurance policies in respect of the specified Canadian risks referred to in paragraph a are deemed to have been included in computing its income for that preceding year.

2020, c. 16, s. 124.