Income Tax Regulations (C.R.C., c. 945)

Regulations are current to 2017-09-27 and last amended on 2017-07-01. Previous Versions

 [Repealed, SOR/2005-264, s. 30]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/92-51, s. 7;
  • SOR/2005-264, s. 30.

Association of Benefits with Time Periods

 Where, for the purposes of Part LXXXIII or this Part or subsection 147.1(10) of the Act, it is necessary to associate benefits provided under a defined benefit provision of a pension plan with periods of time, the association shall be made in a manner acceptable to the Minister.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/92-51, s. 7.

Minister’s Actions

 For the purposes of this Part, a waiver, extension of time or other modification of the requirements of this Part granted by the Minister or an approval by the Minister in respect of any matter is not effective unless it is in writing and expressly refers to the requirement that is modified or the matter in respect of which the approval is given.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/92-51, s. 7.

PART LXXXVITaxable Capital Employed in Canada

 For the purposes of this Part and Part I.3 of the Act,

attributed surplus

attributed surplus of a non-resident insurer for a taxation year has the meaning assigned by subsection 2400(1); (surplus attribué)

Canadian assets

Canadian assets of a corporation that is a financial institution (as defined in subsection 181(1) of the Act) at any time in a taxation year means, in respect of the year, the amount, if any, by which

  • (a) the total of all amounts each of which is the amount at which an asset of the corporation (which asset is required, or, if the corporation were a bank to which the Bank Act applied, would be required, to be reflected in a return under subsection 223(1) of the Bank Act, as that Act read on May 31, 1992, if that return were prepared on a non-consolidated basis) would be shown on the corporation’s balance sheet at the end of the year if its balance sheet were prepared on a non-consolidated basis

exceeds

  • (b) the investment allowance of the corporation for the year determined under subsection 181.3(4) of the Act; (actif canadien)

  • (c) [Repealed, 2013, c. 33, s. 38]

Canadian premiums

Canadian premiums for a taxation year, in respect of an insurance corporation that was resident in Canada at any time in the year and throughout the year did not carry on a life insurance business, means the total of the insurance corporation’s net premiums for the year

  • (a) in respect of insurance on property situated in Canada, and

  • (b) in respect of insurance, other than on property, from contracts with persons resident in Canada,

and, for the purposes of this definition, net premiums has the same meaning as in subsection 403(2), and subsection 403(3) applies as if the references therein to “province” were read as references to “country”; (primes canadiennes)

Canadian reserve liabilities

Canadian reserve liabilities of an insurer as at the end of a taxation year has the meaning assigned by subsection 2400(1); ((passif de réserve canadienne))

permanent establishment

permanent establishment has the same meaning as in subsection 400(2); (établissement stable)

total assets

total assets of a corporation that is a financial institution (as defined in subsection 181(1) of the Act) at any time in a taxation year means, in respect of that year, the amount, if any, by which

  • (a) the total of all amounts each of which is the amount at which an asset of the corporation would be shown on the corporation’s balance sheet at the end of the year if its balance sheet were prepared on a non-consolidated basis

exceeds

  • (b) the investment allowance of the corporation for the year determined under subsection 181.3(4) of the Act; (actif total)

total premiums

total premiums for a taxation year, in respect of an insurance corporation that was resident in Canada at any time in the year and throughout the year did not carry on a life insurance business, means the total of the corporation’s net premiums for the year (as defined in subsection 403(2)) that are included in computing its income under Part I of the Act; (total des primes)

total reserve liabilities

total reserve liabilities of an insurer as at the end of a taxation year means the amount determined by the formula

A – B

where

A
is the total amount as at the end of the year of the insurer’s liabilities and reserves (other than liabilities and reserves in respect of a segregated fund within the meaning assigned by subsection 138(12) of the Act) in respect of all its insurance policies, as determined for the purposes of the Superintendent of Financial Institutions, if the insurer is required by law to report to the Superintendent of Financial Institutions, or, in any other case, the superintendent of insurance or other similar officer or authority of the province under the laws of which the insurer is incorporated, and
B
is the total of the reinsurance recoverable (within the meaning assigned by subsection 2400(1)) reported as a reinsurance asset by the insurer as at the end of the year relating to its liabilities and reserves in A. (passif total de réserve)
  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/94-298, s. 2;
  • SOR/94-686, ss. 57(F), 79(F);
  • SOR/2000-413, s. 8;
  • 2010, c. 25, s. 86;
  • 2013, c. 33, s. 38.

 For the purpose of determining the taxable capital employed in Canada of a corporation for a taxation year under subsection 181.2(1) of the Act, the prescribed proportion of the corporation’s taxable capital (as determined under Part I.3 of the Act) for the year is the amount determined by the formula

A × (B / C)

where

A
is the taxable capital (as determined under Part I.3 of the Act) of the corporation for the year,
B
is the total of all amounts each of which is the amount, determined in accordance with Part IV (or, in the case of an airline corporation, that would be so determined if the corporation had a permanent establishment in every province and if paragraphs 407(1)(a) and (b) were read without reference to the words “in Canada”), of the corporation’s taxable income earned in the year in a particular province or the amount of its taxable income that would, pursuant to that Part, be earned in the year in a province if all permanent establishments of the corporation in Canada were in a province, and
C
is the corporation’s taxable income for the year,

except that, where the corporation’s taxable income for the year is nil, the corporation shall, for the purposes of this section, be deemed to have a taxable income for the year of $1,000.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-298, s. 2;
  • SOR/94-686, ss. 43(F);
  • 79(F).

 For the purposes of paragraph (b) of the definition Canadian surtax payable in subsection 125.3(4) of the Act, the prescribed proportion of the amount determined under section 123.2 of the Act in respect of a corporation for a taxation year is the amount determined by the formula

A × (B / C)

where

A
is the amount determined under section 123.2 of the Act in respect of the corporation for the year;
B
is
  • (a) where the corporation carried on a life insurance business at any time in the year, the corporation’s taxable capital (as determined under Part I.3 of the Act) for the year, and

  • (b) in any other case, the corporation’s taxable capital employed in Canada (as would be determined under Part I.3 of the Act if that Part were read without reference to paragraphs 181.3(1)(a) and (b) thereof) for the year; and

C
is the corporation’s taxable capital (as determined under Part I.3 of the Act) for the year.
  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-298, s. 2;
  • SOR/94-686, s. 79(F).

 For the purposes of Part VI of the Act,

  • (a) Canadian assets of a corporation that is a financial institution (as defined in subsection 190(1) of the Act) at any time in a taxation year means, in respect of that year, the amount that would be determined under the definition Canadian assets in section 8600 in respect of the corporation for the year if the reference in that definition to “subsection 181(1)” were read as a reference to “subsection 190(1)” and paragraph (b) of that definition were read as follows:

    • “(b) the total determined under section 190.14 of the Act in respect of the corporation’s investments for the year in financial institutions related to it;”;

  • (b) total assets of a corporation that is a financial institution (as defined in subsection 190(1) of the Act) at any time in a taxation year means, in respect of that year, the amount that would be determined under the definition total assets in section 8600 in respect of the corporation for the year if the reference in that definition to “subsection 181(1)” were read as a reference to “subsection 190(1)” and paragraph (b) of that definition were read as follows:

    • “(b) the total determined under section 190.14 of the Act in respect of the corporation’s investments for the year in financial institutions related to it;”

  • (c) attributed surplus, Canadian reserve liabilities and total reserve liabilities have the same respective meanings as in section 8600.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/94-298, s. 2;
  • SOR/94-686, s. 79(F);
  • 2013, c. 33, s. 39(E).
 
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