Income Tax Act

Version of section 190.16 from 2004-08-31 to 2007-02-20:

Marginal note:Capital allowance
  •  (1) For the purposes of this Part, the capital allowance for a taxation year of a life insurance corporation that carries on business in Canada at any time in the year is the total of

    • (a) $10,000,000,

    • (b) 1/2 of the amount, if any, by which the lesser of

      • (i) $50,000,000, and

      • (ii) its taxable capital employed in Canada for the year

      exceeds $10,000,000,

    • (c) 1/4 of the amount, if any, by which the lesser of

      • (i) $100,000,000, and

      • (ii) its taxable capital employed in Canada for the year

      exceeds $50,000,000,

    • (d) 1/2 of the amount, if any, by which the lesser of

      • (i) $300,000,000, and

      • (ii) its taxable capital employed in Canada for the year

      exceeds $200,000,000, and

    • (e) 3/4 of the amount, if any, by which its taxable capital employed in Canada for the year exceeds $300,000,000,

    unless the corporation is related at the end of the year to another life insurance corporation that carries on business in Canada, in which case, subject to subsection 190.16(4), its capital allowance for the year is nil.

  • Marginal note:Related life insurance corporation

    (2) A life insurance corporation that carries on business in Canada at any time in a taxation year and that is related at the end of the year to another life insurance corporation that carries on business in Canada may file with the Minister an agreement, in prescribed form on behalf of the related group of life insurance corporations of which the corporation is a member, under which an amount that does not exceed the total of

    • (a) $10,000,000,

    • (b) 1/2 of the amount, if any, by which the lesser of

      • (i) $50,000,000, and

      • (ii) the total of all amounts, each of which is the taxable capital employed in Canada of a life insurance corporation for the year that is a member of the related group,

      exceeds $10,000,000,

    • (c) 1/4 of the amount, if any, by which the lesser of

      • (i) $100,000,000, and

      • (ii) the total of all amounts, each of which is the taxable capital employed in Canada of a life insurance corporation for the year that is a member of the related group,

      exceeds $50,000,000,

    • (d) 1/2 of the amount, if any, by which the lesser of

      • (i) $300,000,000, and

      • (ii) the total of all amounts, each of which is the taxable capital employed in Canada of a life insurance corporation for the year that is a member of the related group,

      exceeds $200,000,000, and

    • (e) 3/4 of the amount, if any, by which the total of all amounts, each of which is the taxable capital employed in Canada of a life insurance corporation for the year that is a member of the related group, exceeds $300,000,000

    is allocated among the members of that related group for the year.

  • Marginal note:Idem

    (3) The Minister may request a life insurance corporation that carries on business in Canada at any time in a taxation year and that, at the end of the year, is related to any other life insurance corporation that carries on business in Canada to file with the Minister an agreement referred to in subsection 190.16(2) and, if the corporation does not file such an agreement within 30 days after receiving the request, the Minister may allocate among the members of the related group of life insurance corporations of which the corporation is a member for the year an amount not exceeding the total of

    • (a) $10,000,000,

    • (b) 1/2 of the amount, if any, by which the lesser of

      • (i) $50,000,000, and

      • (ii) the total of all amounts, each of which is the taxable capital employed in Canada of a life insurance corporation for the year that is a member of the related group,

      exceeds $10,000,000,

    • (c) 1/4 of the amount, if any, by which the lesser of

      • (i) $100,000,000, and

      • (ii) the total of all amounts, each of which is the taxable capital employed in Canada of a life insurance corporation for the year that is a member of the related group,

      exceeds $50,000,000,

    • (d) 1/2 of the amount, if any, by which the lesser of

      • (i) $300,000,000, and

      • (ii) the total of all amounts, each of which is the taxable capital employed in Canada of a life insurance corporation for the year that is a member of the related group,

      exceeds $200,000,000, and

    • (e) 3/4 of the amount, if any, by which the total of all amounts, each of which is the taxable capital employed in Canada of a life insurance corporation for the year that is a member of the related group, exceeds $300,000,000.

  • Marginal note:Idem

    (4) For the purposes of this Part, the least amount allocated for a taxation year to a member of a related group under an agreement described in subsection 190.16(2) or by the Minister under subsection 190.16(3) is the capital allowance for that year of the member.

  • Marginal note:Provisions applicable to Part

    (5) Subsections 190.15(5) and 190.15(6) apply to this section with such modifications as the circumstances require.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1994, c. 21, s. 91.
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