I-3 - Taxation Act

Section 824 Disposition versions

2009-05-15

824. Despite any other provision of this Part, the following rules apply to an insurer:

(a)  if a life insurer resident in Canada carries on an insurance business in Canada and elsewhere in a taxation year,

i.  its income or loss for the year from carrying on an insurance business is the amount of its income or loss for the year from carrying on the insurance business in Canada,

ii.  in computing the insurer’s income or loss for the year from the insurance business carried on by it in Canada, no amount is to be included in respect of the insurer’s gross investment revenue for the year derived from property used or held by it in the course of carrying on an insurance business that is not designated insurance property for the taxation year of the insurer, and

iii.  in computing the insurer’s taxable capital gains or allowable capital losses for the year from dispositions of capital property (in this subparagraph referred to as “insurance business property”) that, at the time of the disposition, was used or held by the insurer in the course of carrying on an insurance business,

(1)  there is to be included each taxable capital gain or allowable capital loss of the insurer for the year from a disposition in the year of an insurance business property that was a designated insurance property for the taxation year of the insurer, and

(2)  there is not to be included any taxable capital gain or allowable capital loss of the insurer for the year from a disposition in the year of an insurance business property that was not a designated insurance property for the taxation year of the insurer; and

(b)  if an insurer not resident in Canada carries on an insurance business in Canada in a taxation year,

i.  its income or loss for the year from carrying on an insurance business is the amount of its income or loss for the year from carrying on the insurance business in Canada,

ii.  in computing the insurer’s income or loss for the year from the insurance business carried on by it in Canada, no amount is to be included in respect of the insurer’s gross investment revenue for the year derived from property used or held by it in the course of carrying on an insurance business that is not designated insurance property for the taxation year of the insurer, and

iii.  in computing the insurer’s taxable capital gains or allowable capital losses for the year from dispositions of capital property (in this subparagraph referred to as “insurance business property”) that, at the time of the disposition, was used or held by the insurer in the course of carrying on an insurance business,

(1)  there is to be included each taxable capital gain or allowable capital loss of the insurer for the year from a disposition in the year of an insurance business property that was a designated insurance property for the taxation year of the insurer, and

(2)  there is not to be included any taxable capital gain or allowable capital loss of the insurer for the year from a disposition in the year of an insurance business property that was not a designated insurance property for the taxation year of the insurer.

1972, c. 23, s. 617; 1993, c. 16, s. 299; 1995, c. 63, s. 261; 1998, c. 16, s. 191; 2009, c. 5, s. 347.

2006-03-01

824. Notwithstanding any other provision of this Part, where a life insurer resident in Canada carries on an insurance business in Canada and elsewhere in a taxation year, the following rules apply:

(a)  its income or loss for the year from carrying on an insurance business is the amount of its income or loss for the year, computed in accordance with this Part, from the business in Canada;

(b)  no amount shall be included in computing its income for the year in respect of its taxable capital gains and allowable capital losses from dispositions of property, other than property disposed of in a taxation year in which it was designated insurance property, of the insurer used or held by it in the course of carrying on an insurance business.

1972, c. 23, s. 617; 1993, c. 16, s. 299; 1995, c. 63, s. 261; 1998, c. 16, s. 191.