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

Regulations are current to 2015-08-04 and last amended on 2015-07-01. Previous Versions

 [Repealed, 2013, c. 34, s. 411]

  • 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);
  • SOR/98-571, s. 1;
  • 2001, c. 22, s. 22;
  • 2013, c. 34, s. 411.
  •  (1) For the purposes of subclause 181.3(1)(c)(ii)(A)(II) and clause 190.11(b)(i)(B) of the Act, the amount prescribed in respect of a particular corporation for a taxation year ending at a particular time is the total of all amounts each of which is the amount determined in respect of a corporation that is, at the particular time, a foreign insurance subsidiary of the particular corporation, equal to the amount, if any, by which

    • (a) the amount by which the total, at the end of the subsidiary’s last taxation year ending at or before the particular time, of

      • (i) the amount of the subsidiary’s long-term debt, and

      • (ii) the amount of the subsidiary’s capital stock (or, in the case of an insurance corporation incorporated without share capital, the amount of its member’s contributions), retained earnings, contributed surplus and any other surpluses

      exceeds the total of

      • (iii) the amount of the subsidiary’s deferred tax debit balance at the end of the year, and

      • (iv) the amount of any deficit deducted in computing the subsidiary’s shareholders’ equity at the end of the year

    exceeds the total of all amounts each of which is

    • (b) the carrying value to its owner at the particular time for the taxation year that includes the particular time of a share of the subsidiary’s capital stock or its long term debt that is owned at the particular time by

      • (i) the particular corporation,

      • (ii) a subsidiary of the particular corporation,

      • (iii) a corporation

        • (A) that is resident in Canada,

        • (B) that carried on a life insurance business in Canada at any time in its taxation year ending at or before the particular time, and

        • (C) that is

          • (I) a corporation of which the particular corporation is a subsidiary, or

          • (II) a subsidiary of a corporation described in subclause (I), or

      • (iv) a subsidiary of a corporation described in subparagraph (iii), or

    • (c) an amount included under paragraph (a) in respect of any surplus of the subsidiary contributed by a corporation described in any of subparagraphs (b)(i) to (iv), other than an amount included under paragraph (b).

    • (d[Repealed, SOR/98-571, s. 2]

  • (2) For the purposes of subclause 181.3(1)(c)(ii)(A)(III) and clause 190.11(b)(i)(C) of the Act, the amount prescribed in respect of a particular corporation for a taxation year ending at a particular time is the total of all amounts each of which is the amount determined in respect of a corporation that is, at the particular time, a foreign insurance subsidiary of the particular corporation, equal to the amount, if any, by which

    • (a) the total of the amounts determined under paragraphs (1)(b) and (c) in respect of the subsidiary for the year

    exceeds

    • (b) the amount determined under paragraph (1)(a) in respect of the subsidiary for the year.

  • (3) For the purposes of subclause 181.3(1)(c)(ii)(A)(V) and clause 190.11(b)(i)(E) of the Act, the amount prescribed in respect of a particular corporation for a taxation year ending at a particular time means the total of all amounts each of which would be the total reserve liabilities of a foreign insurance subsidiary of the particular corporation as at the end of the subsidiary’s last taxation year ending at or before the particular time if the subsidiary were required by law to report to the Superintendent of Financial Institutions for that year.

  • (4) The definitions in this subsection apply in this section.

    “foreign insurance subsidiary”

    “foreign insurance subsidiary” of a particular corporation at any time means a non-resident corporation that

    • (a) carried on a life insurance business throughout its last taxation year ending at or before that time,

    • (b) did not carry on a life insurance business in Canada at any time in its last taxation year ending at or before that time, and

    • (c) is at that time

      • (i) a subsidiary of the particular corporation, and

      • (ii) not a subsidiary of any corporation that

        • (A) is resident in Canada,

        • (B) carried on a life insurance business in Canada at any time in its last taxation year ending at or before that time, and

        • (C) is a subsidiary of the particular corporation. (filiale d’assurance étrangère)

    “subsidiary”

    “subsidiary” of a corporation (in this definition referred to as the “parent corporation”) means a corporation controlled by the parent corporation where shares of each class of the capital stock of the corporation having a fair market value of not less than 75% of the fair market value of all of the issued and outstanding shares of that class belong to

    • (a) the parent corporation,

    • (b) a corporation that is a subsidiary of the parent corporation, or

    • (c) any combination of corporations each of which is a corporation referred to in paragraph (a) or described in paragraph (b). (filiale)

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/96-475, s. 1;
  • SOR/98-571, s. 2;
  • SOR/2000-413, s. 9.