I-3 - Taxation Act

Section 817 Disposition versions

2006-03-01

817. For the purposes of this Part, a corporation is deemed to carry on an insurance business in a taxation year if, during that year, it is a party to an insurance contract or other arrangement of a particular class whereby it can reasonably be regarded as undertaking:

(a)  to insure other persons against loss, damage or expense of any kind; or

(b)  to pay insurance benefits to other persons on the death of any person, on the occurrence of an event or contingency dependent on human life, for a term dependent on human life or at a fixed or determinable future time.

The same applies whatever be the form and scope of such contract or arrangement, and even if the persons contemplated are members or shareholders of the corporation.

1972, c. 23, s. 612; 1997, c. 3, s. 71; 1998, c. 16, s. 189.