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

Regulations are current to 2015-03-03 and last amended on 2014-12-16. Previous Versions

Insurance Corporations

  •  (1) Notwithstanding subsections 402(3) and (4), the amount of taxable income that shall be deemed to have been earned in a taxation year in a particular province by an insurance corporation is that proportion of its taxable income for the year that the aggregate of

    • (a) its net premiums for the year in respect of insurance on property situated in the province, and

    • (b) its net premiums for the year in respect of insurance, other than on property, from contracts with persons resident in the province,

    is of the total of such of its net premiums for the year as are included in computing its income for the purposes of Part I of the Act.

  • (2) In this section, “net premiums” of a corporation for a taxation year means the aggregate of the gross premiums received by the corporation in the year (other than consideration received for annuities), minus the aggregate for the year of

    • (a) premiums paid for reinsurance,

    • (b) dividends or rebates paid or credited to policyholders, and

    • (c) rebates or returned premiums paid in respect of the cancellation of policies,

    by the corporation.

  • (3) For the purposes of subsection (1), where an insurance corporation had no permanent establishment in a taxation year in a particular province,

    • (a) each net premium for that year in respect of insurance on property situated in the particular province shall be deemed to be a net premium in respect of insurance on property situated in the province in which the permanent establishment of the corporation to which the net premium is reasonably attributable is situated; and

    • (b) each net premium for that year in respect of insurance, other than on property, from contracts with persons resident in the particular province shall be deemed to be a net premium in respect of insurance, other than on property, from contracts with persons resident in the province in which the permanent establishment of the corporation to which the net premium is reasonably attributable is situated.

  • (4) For the purposes of subsection (1), if in a taxation year an insurance corporation has no permanent establishment in a particular country other than Canada, but provides insurance on property in the particular country or has a contract for insurance, other than on property, with a person resident in the particular country, each net premium for the taxation year in respect of the insurance is deemed to be a net premium in respect of insurance on property situated in, or from contracts with persons resident in, as the case may be, the province in Canada or country other than Canada in which is situated the permanent establishment of the corporation to which the net premium is reasonably attributable in the circumstances.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/94-686, ss. 5(F), 57(F);
  • 2009, c. 2, s. 94.

Banks

[SOR/2009-302, s. 2]
  •  (1) Notwithstanding subsections 402(3) and (4), the amount of taxable income that is deemed to have been earned by a bank in a taxation year in a province in which it had a permanent establishment is 1/3 of the total of

    • (a) that proportion of its taxable income for the year that the aggregate of the salaries and wages paid in the year by the bank to employees of its permanent establishment in the province is of the aggregate of all salaries and wages paid in the year by the bank; and

    • (b) twice that proportion of its taxable income for the year that the aggregate amount of loans and deposits of its permanent establishment in the province for the year is of the aggregate amount of all loans and deposits of the bank for the year.

  • (2) For the purposes of subsection (1), the amount of loans for a taxation year is 1/12 of the aggregate of the amounts outstanding, on the loans made by the bank, at the close of business on the last day of each month in the year.

  • (3) For the purposes of subsection (1), the amount of deposits for a taxation year is 1/12 of the aggregate of the amounts on deposit with the bank at the close of business on the last day of each month in the year.

  • (4) For the purposes of subsections (2) and (3), loans and deposits do not include bonds, stocks, debentures, items in transit and deposits in favour of Her Majesty in right of Canada.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/80-949, s. 2;
  • SOR/2009-302, s. 3.