I-3 - Taxation Act

Section 841 Disposition versions

2015-10-26

841. A life insurer may also deduct:

(a)  an amount equal to the amount by which the aggregate of the policy dividends (to the extent that they are not paid out of a segregated fund) that became payable by the insurer after its 1968 taxation year and before the end of the year under its participating life insurance policies exceeds the aggregate of the amounts deductible under this paragraph (including the amounts that were referred to in section 841.1, as it read before being repealed) in computing its income for the preceding taxation years;

(b)  any amount that he might deduct in computing his income if the provisions of section 832 applied to a life insurance business in Canada, to the exclusion, however, of an amount credited under a participating life insurance;

(c)  (paragraph repealed);

(d)  (paragraph repealed);

(e)  (paragraph repealed);

(f)  any policy loan granted by him in the year and after 1977;

(g)  (paragraph repealed);

(h)  (paragraph repealed).

1972, c. 23, s. 629; 1973, c. 17, s. 96; 1978, c. 26, s. 153; 1984, c. 15, s. 189; 1986, c. 19, s. 168; 1990, c. 59, s. 318; 1991, c. 25, s. 95; 1996, c. 39, s. 232; 2001, c. 53, s. 170; 2015, c. 24, s. 122.

2006-03-01

841. A life insurer may also deduct:

(a)  an amount equal to the lesser of:

i.  the excess of the aggregate of the policy dividends to the extent that they are not paid out of a segregated fund, which have become payable by the insurer after his 1968 taxation year and before the end of the year in accordance with the terms of its participating life insurance policies, over the aggregate of the amounts deductible in computing his income under this paragraph for the preceding taxation years, and

ii.  the excess of the aggregate of its income, computed in accordance with prescribed rules, for the year and the preceding taxation years ending after 31 December 1968 from its participating life insurance business carried on in Canada, over the aggregate of the amounts deductible, under this paragraph or paragraph d of section 840, in computing its income for the preceding taxation years;

(b)  any amount that he might deduct in computing his income if the provisions of section 832 applied to a life insurance business in Canada, to the exclusion, however, of an amount credited under a participating life insurance;

(c)  (paragraph repealed);

(d)  (paragraph repealed);

(e)  (paragraph repealed);

(f)  any policy loan granted by him in the year and after 1977;

(g)  for its taxation year ending after 12 November 1981, the aggregate of interest on a policy loan included by it in computing its income for a taxation year ending before 13 November 1981,

i.  to the extent that the interest had accrued to it before the commencement of its taxation year 1969, or

ii.  to the extent that the interest had been included in computing its income for a preceding taxation year;

(h)  (paragraph repealed).

1972, c. 23, s. 629; 1973, c. 17, s. 96; 1978, c. 26, s. 153; 1984, c. 15, s. 189; 1986, c. 19, s. 168; 1990, c. 59, s. 318; 1991, c. 25, s. 95; 1996, c. 39, s. 232; 2001, c. 53, s. 170.