I-3 - Taxation Act

Section 977.2 Disposition versions

2017-02-08

977.2. If a policyholder has after 20 March 2013 and before 1 April 2014 disposed of an interest in a leveraged insurance policy because of a partial or complete surrender of the policy, the policyholder may deduct in computing the policyholder’s income for the taxation year in which the disposition occurs an amount that does not exceed the least of

(a)  the portion of an amount, included under section 968 in computing the policyholder’s income for the year in respect of the disposition, that is attributable to an investment account described in paragraph b of the definition of “leveraged insurance policy” in section 1 in respect of the policy;

(b)  the aggregate of all amounts each of which is an amount, to the extent that the amount has not otherwise been included in determining an amount under this paragraph, of a payment made after 20 March 2013 and before 1 April 2014 that reduces the amount outstanding of a borrowing or policy loan, as the case may be, described in paragraph a of the definition of “leveraged insurance policy” in section 1 in respect of the policy; and

(c)  the aggregate of all amounts each of which is an amount, to the extent that the amount has not otherwise been included in determining an amount under this paragraph, that the policyholder is entitled to receive as a result of the disposition and that is paid after 20 March 2013 and before 1 April 2014 out of an investment account described in paragraph b of the definition of “leveraged insurance policy” in section 1 in respect of the policy.

2017, c. 1, s. 256.