Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Act current to 2015-08-30 and last amended on 2015-08-01. Previous Versions

PART VITAX ON CAPITAL OF FINANCIAL INSTITUTIONS

Marginal note:Definitions
  •  (1) For the purposes of this Part,

    “financial institution”

    « institution financière »

    “financial institution” means a corporation that

    • (a) is a bank,

    • (b) is authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public,

    • (c) is authorized under the laws of Canada or a province to accept deposits from the public and carries on the business of lending money on the security of real property or immovables or investing in indebtedness on the security of mortgages on real property or of hypothecs on immovables,

    • (d) is a life insurance corporation that carries on business in Canada, or

    • (e) is a corporation all or substantially all of the assets of which are shares or indebtedness of corporations described in any of paragraphs (a) to (d) or this paragraph to which the corporation is related;

    “long-term debt”

    « passif à long terme »

    “long-term debt” means

    • (a) in the case of a bank, its subordinated indebtedness (within the meaning assigned by section 2 of the Bank Act) evidenced by obligations issued for a term of not less than 5 years,

    • (b) in the case of an insurance corporation, its subordinated indebtedness (within the meaning assigned by section 2 of the Insurance Companies Act) evidenced by obligations issued for a term of not less than 5 years, and

    • (c) in the case of any other corporation, its subordinated indebtedness (within the meaning that would be assigned by section 2 of the Bank Act if the definition of that expression in that section were applied with such modifications as the circumstances require) evidenced by obligations issued for a term of not less than 5 years;

    “reserves”

    « réserves »

    “reserves”, in respect of a financial institution for a taxation year, means the amount at the end of the year of all of the institution’s reserves, provisions and allowances (other than allowances in respect of depreciation or depletion) and, for greater certainty, includes any provision in respect of deferred taxes.

  • Marginal note:Prescribed meanings

    (1.1) For the purposes of this Part, the expressions “attributed surplus”, “Canadian assets”, “Canadian reserve liabilities”, “total assets” and “total reserve liabilities” have the meanings that are prescribed.

  • Marginal note:Application of ss. 181(3) and (4)

    (2) Subsections 181(3) and 181(4) apply to this Part with such modifications as the circumstances require.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 190;
  • 1994, c. 7, Sch. II, s. 156, c. 21, s. 86;
  • 2001, c. 17, s. 222;
  • 2013, c. 34, s. 152.