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

Regulations are current to 2015-06-09 and last amended on 2015-05-29. Previous Versions

PART XIXINVESTMENT INCOME TAX

Interpretation

  •  (1) In this Part,

    “benefit”

    “benefit” under a policy includes a policy dividend, an experience rating refund, a refund of premiums and any amount deemed by paragraph 138.1(1)(g) of the Act for the purposes of Part I of the Act to be a payment under the terms and conditions of the policy, but does not include a policy loan or interest on funds left on deposit with the insurer under the terms of the policy; (prestation)

    “excluded arrangement”

    “excluded arrangement” of an insurer at any time means

    • (a) a life insurance policy in Canada issued by the insurer (or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder), which is at that time a registered life insurance policy, an annuity contract (including a settlement annuity), a group term life insurance policy or an existing guaranteed life insurance policy,

    • (b) a registered pension fund or plan in respect of which the insurer is at that time a plan sponsor, or a retirement compensation arrangement in respect of which the insurer is the custodian,

    • (c) a life insurance policy (other than a life insurance policy in Canada) issued by the insurer before that time (or in respect of which the insurer has before that time assumed the obligations of the issuer of the policy to the policyholder), and

    • (d) a reinsurance arrangement under which the insurer has before that time assumed, directly or indirectly, risks under life insurance policies (other than policies issued by the insurer or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder), to the extent that the arrangement relates to those risks; (mécanisme exclu)

    “existing guaranteed life insurance policy”

    “existing guaranteed life insurance policy” at any time means a non-participating life insurance policy in Canada in respect of which the amount of every premium that became payable before that time and after March 2, 1988 was fixed and determined on or before March 2, 1988, adjusted for any specified transaction or event that occurs after March 2, 1988 in respect of the policy; (police d’assurance-vie garantie existante)

    “group term life insurance policy”

    “group term life insurance policy” is a group life insurance policy under which

    • (a) no amount (other than a policy dividend, an experience rating refund or a refund of premiums) may become payable to any person, except in the event of the death or disability of a person whose life was insured under the policy, and

    • (b) no amount may become payable to a person (other than the group policyholder) in respect of a policy dividend, an experience rating refund or a refund of premiums that has been funded by contributions made to or under the policy by another person; (police collective d’assurance temporaire sur la vie)

    “guaranteed interest”

    “guaranteed interest” in respect of a life insurance policy for a taxation year means

    • (a) in respect of a life insurance policy (other than a pre-funded group life insurance policy), the total of all amounts each of which is the amount in respect of a guaranteed benefit in respect of which an amount is determined under paragraph 1401(1)(a), (c) or (d) for the year, where that benefit is provided under the terms and conditions of the policy as they existed on March 2, 1988, determined by multiplying the greater of

      • (i) the rate of interest used by the issuer of the policy in respect of the year in determining the amount of the benefit, and

      • (ii) 4%

      by 1/2 of the total of

      • (iii) the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(a), (c) or (d), as the case may be, in respect of the benefit in computing the insurer’s income for the year, if that amount were determined without reference to any policy loan or reinsurance arrangement, and

      • (iv) the maximum amount that would have been deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(a), (c) or (d), as the case may be, in respect of the benefit in computing the insurer’s income for the immediately preceding taxation year, if that amount were determined without reference to any policy loan or reinsurance arrangement, and

    • (b) in respect of a pre-funded group life insurance policy, 80 per cent of the amount that would be determined under paragraph (a) in respect of the policy for the year, if that paragraph were read without reference to the words “(other than a pre-funded group life insurance policy)”; (intérêts garantis)

    “life insurance policy”

    “life insurance policy” does not include

    • (a) that part of a policy in respect of which the policyholder is deemed by paragraph 138.1(1)(e) of the Act to have an interest in a segregated fund trust, or

    • (b) a reinsurance arrangement; (police d’assurance-vie)

    “life insurance policy in Canada”

    “life insurance policy in Canada” does not include

    • (a) that part of a policy in respect of which the policyholder is deemed by paragraph 138.1(1)(e) of the Act to have an interest in a segregated fund trust, or

    • (b) a reinsurance arrangement; (police d’assurance-vie au Canada)

    “maximum tax actuarial reserve”

    “maximum tax actuarial reserve” has the meaning assigned by subsection 138(12) of the Act; (réserve actuarielle maximale aux fins de l’impôt)

    “mortality experience”

    “mortality experience” of an insurer for a taxation year means the positive or negative amount, as the case may be, determined by the formula

    (A - B - C)

    where

    A 
    is the total of all amounts each of which is the amount that became payable in the year by the insurer under a taxable life insurance policy of the insurer as a consequence of the receipt of a claim in respect of the death of a person whose life was insured under the policy, determined without reference to any policy loan,
    B 
    is the total of all amounts each of which is the amount of a reserve that would be determined in accordance with paragraph 1401(1)(a), (c) or (d), if that amount were determined without reference to any policy loan or reinsurance arrangement, in respect of a taxable life insurance policy of the insurer that would have been released in the year as a consequence of the receipt of a claim in respect of the death of a person whose life was insured under the policy, and
    C 
    is 90 per cent of the total of all amounts, each of which is the net cost of pure insurance determined in accordance with section 308 for the year in respect of an interest in a taxable life insurance policy of the insurer; (facteur de mortalité)
    “mortality loss adjustment account”

    “mortality loss adjustment account” of an insurer at the end of a taxation year is the positive amount, if any, determined by the formula

    A + B - C

    where

    A 
    is the mortality loss adjustment account of the insurer for the immediately preceding taxation year,
    B 
    is
    • (a) where the mortality experience of the insurer for the year is a negative amount, the amount of the mortality experience of the insurer for the year, and

    • (b) in any other case, the amount, if any, by which the amount claimed by the insurer under the description of F in computing the amount determined under subsection (6) for the year exceeds the amount of the mortality loss adjustment account of the insurer for the immediately preceding taxation year, and

    C 
    is 1.2 times the amount, if any, by which
    • (a) the net cost of insurance of the insurer for the year

    exceeds

    • (b) the total of all amounts each of which is the net cost of pure insurance determined in accordance with section 308 for the year in respect of an interest in a taxable life insurance policy of the insurer; (compte de redressement pour pertes de mortalité)

    “net cost of insurance”

    “net cost of insurance” of an insurer for a taxation year means the amount, if any, by which

    • (a) the amount determined in the description of A in the definition “mortality experience” in respect of the insurer for the year

    exceeds

    • (b) the amount determined in the description of B in the definition “mortality experience” in respect of the insurer for the year; (coût net de l’assurance)

    “net level premium”

    “net level premium” in respect of a particular premium under a policy (other than a prepaid premium that cannot be refunded except on termination or cancellation of the policy) means

    • (a) where benefits (other than policy dividends) and premiums (other than the frequency of payment thereof) in respect of the policy have been determined at the date of issue of the policy, the amount determined by the formula

      A × (B / C)

      where

      A 
      is the amount of the particular premium,
      B 
      is the present value, at the date of issue of the policy, of the amount of the benefits (other than policy dividends) to be provided under the terms of the policy after the issue of the policy, and
      C 
      is the present value, at the date of issue of the policy, of the amount of the premiums payable under the terms of the policy on or after the issue of the policy, and
    • (b) where the amounts of the benefits or premiums in respect of the policy are not determined at the date of issue of the policy, the amount that would be determined under paragraph (a) in respect of the particular premium if the amount were adjusted in a manner that is reasonable in the circumstances and consistent with the manner of the adjustment referred to in the definition “modified net premium” in subsection 1404(2) in respect of the particular premium; (prime constante nette)

    “net level premium reserve”

    “net level premium reserve” in respect of a life insurance policy for a taxation year means the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c) in respect of the policy in computing the insurer’s income for the year, if any reference to “modified net premium” in sections 1401, 1403 and 1404 were a reference to “net level premium”; (réserve de primes constantes nettes)

    “non-participating life insurance policy”

    “non-participating life insurance policy” means a life insurance policy other than a participating life insurance policy within the meaning assigned by subsection 138(12) of the Act; (police d’assurance-vie sans participation)

    “policy loan”

    “policy loan” has the meaning assigned by subsection 138(12) of the Act; (prêt sur police)

    “pre-funded group life insurance policy”

    “pre-funded group life insurance policy” means a group term life insurance policy, other than a policy under which each premium payable is in respect of coverage for a period, including the day on which the premium becomes payable, that does not exceed twelve months; (police collective d’assurance-vie par capitalisation anticipée)

    “premium”

    “premium” includes

    • (a) consideration received for settlement annuities,

    • (b) amounts received by an insurer in respect of employee contributions under registered pension funds or plans in respect of which the insurer is a plan sponsor or a retirement compensation arrangement in respect of which the insurer is the custodian, and

    • (c) any amount deemed by paragraph 138.1(1)(h) of the Act for the purposes of Part I of the Act to be a premium received by an insurer,

    but does not include amounts received in respect of the repayment of a policy loan or in respect of interest on a policy loan and, for greater certainty, the amount of a premium is not reduced by the amount of a refund of premiums; (prime)

    “registered life insurance policy”

    “registered life insurance policy” has the meaning assigned by section 211 of the Act; (police d’assurance-vie agréée)

    “reinsurance arrangement”

    “reinsurance arrangement” does not include an arrangement under which an insurer has assumed the obligations of the issuer of a life insurance policy to the policyholder; (mécanisme de réassurance)

    “segregated fund”

    “segregated fund” has the meaning assigned by subsection 138(12) of the Act; (fonds réservé)

    “specified transaction or event”

    “specified transaction or event” in respect of a life insurance policy means

    • (a) a change in underwriting class,

    • (b) a change in premium due to a change in frequency of premium payments within a year that does not alter the present value, at the beginning of the year, of the total premiums to be paid under the policy in the year,

    • (c) an addition under the terms of the policy as they existed on March 2, 1988, of accidental death, dismemberment, disability or guaranteed purchase option benefits,

    • (d) a deletion of a rider,

    • (e) redating lapsed policies within 60 days after the end of the calendar year in which the lapse occurred, or redating for policy loan indebtedness,

    • (f) a change in premium due to a correction of erroneous information,

    • (g) the payment of a premium after its due date, or no more than 30 days before its due date, as established on or before March 2, 1988, or

    • (h) the payment of an amount of interest described in subparagraph 148(9)(e.1)(i) of the Act; (opération ou événement déterminé)

    “taxable life insurance policy”

    “taxable life insurance policy” of an insurer at any time means a life insurance policy in Canada issued by the insurer (or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder), other than a policy that is at that time an excluded arrangement. (police d’assurance-vie imposable)

  • (2) For the purposes of this Part,

    • (a) any rider added, at any time after March 2, 1988, to a life insurance policy shall be deemed to be a separate life insurance policy issued at that time; and

    • (b) in respect of an insurer’s first taxation year that commences after June 17, 1987 and ends after 1987, the maximum amount that would have been deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act, as the case may be, in computing the insurer’s income for the immediately preceding year shall be determined as though the provisions that apply in determining that maximum amount for that first taxation year were applicable in respect of that immediately preceding year.

Prescribed Provisions

  • (3) For the purposes of paragraph (b) of the description of C in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, the provisions of the Act that are prescribed are paragraphs 12(1)(i), (i.1), (n), (n.1), (n.2), (n.3), (o), (t) and (v) and subsections 13(1), 59(3.2) and (3.3), 138(4.4) and 140(2).

Prescribed Arrangements

  • (4) For the purposes of the description of D in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, prescribed arrangements in respect of an insurer are

    • (a) life insurance policies in Canada issued by the insurer (or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder) that are group term life insurance policies or existing guaranteed life insurance policies;

    • (b) life insurance policies (other than life insurance policies in Canada) issued by the insurer (or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder);

    • (c) retirement compensation arrangements in respect of which the insurer is the custodian; and

    • (d) reinsurance arrangements under which the insurer has assumed or ceded risks insured under life insurance policies (other than policies issued by the insurer or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder).

Prescribed Rules for Determining Amounts

  • (5) The amount in the description of D in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, in respect of a life insurer for a taxation year is determined by the formula

    A - B + C - D - E - F

    where

    A 
    is the total of all amounts each of which is the maximum amount that would be deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act in respect of an excluded arrangement of the insurer in computing the insurer’s income for the year, if that amount were determined without reference to any policy loan;
    B 
    is the total of all amounts each of which is the maximum amount that would have been deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act in respect of an excluded arrangement of the insurer in computing the insurer’s income for the immediately preceding year, if that amount were determined without reference to any policy loan;
    C 
    is the total of all amounts each of which is the amount of a benefit, determined on a net of reinsurance ceded basis, that has become payable by the insurer in the year in respect of an excluded arrangement of the insurer, to the extent that the benefit is deducted in computing the insurer’s income for the year under Part I of the Act from carrying on a life insurance business in Canada;
    D 
    is the total of all amounts each of which is the amount of a premium, determined on a net of reinsurance ceded basis, that has become receivable by the insurer in the year in respect of an excluded arrangement of the insurer, to the extent that the premium is included in computing the insurer’s income for the year under Part I of the Act from carrying on a life insurance business in Canada;
    E 
    is the positive or negative amount, as the case may be, in respect of the insurer for the year determined by the formula

    (G - H) - (I - J) + (K - L) - (M - N)

    where

    G 
    is the total of all amounts each of which is the maximum amount that would be deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act in respect of a taxable life insurance policy of the insurer in computing the insurer’s income for the year, if that amount were determined without reference to any policy loan or reinsurance arrangement,
    H 
    is the total of all amounts each of which is the maximum amount that would be deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act in respect of a taxable life insurance policy of the insurer in computing the insurer’s income for the year, if that amount were determined without reference to any policy loan,
    I 
    is the total of all amounts each of which is the maximum amount that would have been deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act in respect of a taxable life insurance policy of the insurer in computing the insurer’s income for the immediately preceding taxation year, if that amount were determined without reference to any policy loan or reinsurance arrangement,
    J 
    is the total of all amounts each of which is the maximum amount that would have been deductible under subparagraph 138(3)(a)(i), (ii) or (iv) of the Act in respect of a taxable life insurance policy of the insurer in computing the insurer’s income for the immediately preceding taxation year, if that amount were determined without reference to any policy loan,
    K 
    is the total of all amounts each of which is the amount of a benefit that has become payable in the year by the insurer under a taxable life insurance policy of the insurer,
    L 
    is the total of all amounts each of which is the amount of a benefit, determined on a net of reinsurance ceded basis, that has become payable by the insurer under a taxable life insurance policy of the insurer, to the extent that it is deducted in computing the insurer’s income from carrying on a life insurance business in Canada for the year,
    M 
    is the total of all amounts each of which is the amount of a premium that has become receivable by the insurer in the year under a taxable life insurance policy of the insurer, and
    N 
    is the total of all amounts each of which is the amount of a premium, determined on net of reinsurance ceded basis, that has become receivable by the insurer in the year under a taxable life insurance policy of the insurer, to the extent that the premium is included in computing the insurer’s income from carrying on a life insurance business in Canada for the year; and
    F 
    is the positive or negative amount, as the case may be, determined by the formula

    O + P - Q - R

    where

    O 
    is the total of all amounts each of which is an amount in respect of a group term life insurance policy equal to the lesser of
    • (a) the amount of interest credited by the insurer in the year on account of the policy (other than interest payable in respect of the period ending on its first anniversary date after March 2, 1988), and

    • (b) the amount, if any, by which the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c.1) in respect of the policy in computing the insurer’s income for the year, if that amount were determined without reference to any reinsurance arrangement, exceeds the maximum amount that would have been so deductible in computing the insurer’s income for the immediately preceding year,

    P 
    is 80 per cent of the total of all amounts each of which is the amount in respect of a liability of the insurer, a benefit, a risk or a guarantee, in respect of which an amount is determined under paragraph 1401(1)(a), (c) or (d) for the year, in respect of a pre-funded group life insurance policy of the insurer, determined by multiplying
    • (a) the rate of interest used in determining the amount under paragraph 1401(1)(a), (c) or (d), as the case may be, for the year in respect of the liability, benefit, risk or guarantee, as the case may be,

    by 1/2 of the total of

    • (b) the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(a), (c) or (d), as the case may be, in respect of the liability, benefit, risk or guarantee, as the case may be, in computing the insurer’s income for the year if that amount were determined without reference to any policy loan or reinsurance arrangement, and

    • (c) the maximum amount that would have been deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(a), (c) or (d), as the case may be, in respect of the liability, benefit, risk or guarantee, as the case may be, in computing the insurer’s income for the immediately preceding taxation year if that amount were determined without reference to any policy loan or reinsurance arrangement,

    Q 
    is the total of all amounts each of which is the amount determined for the year in respect of a taxable life insurance policy of the insurer by multiplying
    • (a) the rate of interest used in determining the maximum amount deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c) in respect of the policy in computing the insurer’s income for the year,

    by 1/2 of the total of

    • (b) the maximum amount that would be deductible under subparagraph 138(3)(a)(ii) of the Act in respect of the policy in computing the insurer’s income for the year, if that amount were determined without reference to any reinsurance arrangement, and

    • (c) the maximum amount that would have been deductible under subparagraph 138(3)(a)(ii) of the Act in respect of the policy in computing the insurer’s income for the immediately preceding taxation year, if that amount were determined without reference to any reinsurance arrangement, and

    R 
    is the total of all amounts each of which is an amount in respect of a group term life insurance policy equal to the amount, if any, by which
    • (a) the total of all amounts determined in respect of the insurer under the description of O in respect of the policy for taxation years ending before the year

    exceeds the total of

    • (b) the total of all amounts determined in respect of the insurer under the description of R in respect of the policy for taxation years ending before the year, and

    • (c) the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c.1) in respect of the policy in computing the insurer’s income for the year, if that amount were determined without reference to any reinsurance arrangement.

  • (6) The amount of the term insurance component in the description of E in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, in respect of a life insurer for a taxation year is determined by the formula

    A + B + C - D + E - F + G + H

    where

    A 
    is the amount determined by multiplying 0.0035 by the total of all amounts each of which is the amount of new insurance effected in the year (other than amounts rescinded in the year) under a taxable life insurance policy of the insurer;
    B 
    is the amount determined by multiplying 0.0002 by 1/2 of the total of
    • (a) all amounts of insurance in force at the end of the year under taxable life insurance policies of the insurer (other than paid-up policies), and

    • (b) all amounts of insurance in force at the end of the immediately preceding taxation year under taxable life insurance policies of the insurer (other than paid-up policies);

    C 
    is the amount determined by multiplying 0.20 by the net cost of insurance in respect of the insurer for the year;
    D 
    is the greater of
    • (a) the lesser of $2,500,000 and the amount, if any, by which

      • (i) the total of the amounts determined under the descriptions of A, B, C and E in respect of the insurer for the year

      exceeds

      • (ii) 50 per cent of the amount that would be determined under the description of N in subsection (5) in respect of the insurer for the year, if that amount were determined without reference to any reinsurance arrangement, and

    • (b) the amount, if any, by which

      • (i) the total of the amounts determined under the descriptions of A, B, C and E in respect of the insurer for the year

      exceeds

      • (ii) 75 per cent of the amount that would be determined under the description of N in subsection (5) in respect of the insurer for the year, if that amount were determined without reference to any reinsurance arrangement;

    E 
    is the amount determined under the description of D in respect of the insurer for the immediately preceding taxation year;
    F 
    is such amount as the insurer may claim, not exceeding the positive amount, if any, determined by adding
    • (a) the mortality experience of the insurer for the year, and

    • (b) the amount determined under the description of G in respect of the insurer for the year;

    G 
    is the mortality loss adjustment account of the insurer for the immediately preceding year; and
    H 
    is 1 per cent of the total of all amounts each of which is the amount of a premium that has become receivable by the insurer in the year under a taxable life insurance policy of the insurer in respect of which a positive amount of guaranteed interest is determined for the year under subsection (8).
  • (7) The amount of the amortization adjustment amount in the description of E in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, in respect of a life insurer for a taxation year is determined by the formula

    (A - B) - (C - D)

    where

    A 
    is the total of all amounts each of which is the amount that would be the net level premium reserve for the year in respect of a taxable life insurance policy of the insurer (other than a policy in respect of which a positive amount of guaranteed interest is determined for the year under subsection (8)), if that amount were determined without reference to any policy loan or reinsurance agreement;
    B 
    is the total of all amounts each of which is the amount that would be the net level premium reserve for the immediately preceding taxation year in respect of a taxable life insurance policy of the insurer (other than a policy in respect of which a positive amount of guaranteed interest is determined for the year under subsection (8)), if that amount were determined without reference to any policy loan or reinsurance arrangement;
    C 
    is the total of all amounts each of which is the maximum amount that would be deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c) in computing the insurer’s income for the year, in respect of a taxable life insurance policy of the insurer (other than a policy in respect of which a positive amount of guaranteed interest is determined for the year under subsection (8)), if that amount were determined without reference to any policy loan or reinsurance arrangement; and
    D 
    is the total of all amounts each of which is the maximum amount that would have been deductible under subparagraph 138(3)(a)(i) of the Act pursuant to paragraph 1401(1)(c) in computing the insurer’s income for the immediately preceding taxation year, in respect of a taxable life insurance policy of the insurer (other than a policy in respect of which a positive amount of guaranteed interest is determined for the year under subsection (8)), if that amount were determined without reference to any policy loan or reinsurance arrangement.
  • (8) The amount of guaranteed interest in the description of F in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, in respect of a life insurer for a taxation year is the total of all amounts each of which is the guaranteed interest for the year in respect of

    • (a) a life insurance policy in Canada (other than a policy that was at any time an excluded arrangement), or

    • (b) a pre-funded group life insurance policy,

    where the policy was issued by the insurer (or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder) and the terms and conditions of the policy relating to premiums and benefits were determined on or before March 2, 1988, except that where, at any time after March 2, 1988, the terms and conditions of the policy relating to premiums and benefits have been changed (other than to give effect to terms and conditions which were determined prior to March 3, 1988 or pursuant to a specified transaction or event), the amount of guaranteed interest in respect of the policy for the year in which the change is made and any subsequent taxation year is deemed to be nil.

Prescribed Portion

  • (9) The prescribed portion of an amount referred to in the description of G in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, for a taxation year is

    • (a) where the amount is in respect of a life insurance policy (other than a policy in respect of which a positive amount of guaranteed interest is determined for the year under subsection (8)), 100 per cent of the amount; and

    • (b) in any other case, nil.

Prescribed Arrangements

  • (10) For the purposes of the description of G in subsection 211.1(3) of the Act, as it read in its application to taxation years beginning before 1990, prescribed arrangements of an insurer are life insurance policies in Canada issued by the insurer (or in respect of which the insurer has assumed the obligations of the issuer of the policy to the policyholder) that are group term life insurance policies or policies that, at any time, were existing guaranteed life insurance policies.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-316, s. 1.