Income Tax Act

Marginal note:Definitions

• 141 (1) In this section, demutualization and holding corporation have the same meaning as in subsection 139.1(1).

• Marginal note:Life insurance corporation deemed to be public corporation

  (2) Notwithstanding any other provision of this Act, a life insurance corporation that is resident in Canada is deemed to be a public corporation.

• Marginal note:Holding corporation deemed to be public corporation

  (3) A corporation resident in Canada that is a holding corporation because of its acquisition of shares in connection with the demutualization of a life insurance corporation resident in Canada is deemed to be a public corporation at each time in the specified period of the holding corporation at which the holding corporation would have satisfied conditions prescribed under subparagraph (b)(i) of the definition public corporation in subsection 89(1) if the words “shareholders, the dispersal of ownership of its shares and the public trading of its shares” in that subparagraph were read as “shareholders and the dispersal of ownership of its shares”.

• Marginal note:Specified period

  (4) For the purpose of subsection (3), the specified period of a corporation

  • (a) begins at the time the corporation becomes a holding corporation; and

  • (b) ends at the first time the corporation is a public corporation because of any provision of this Act other than subsection (3).

• Marginal note:Exclusion from taxable Canadian property

  (5) For the purpose of paragraph (d) of the definition taxable Canadian property in subsection 248(1), a share of the capital stock of a corporation is deemed to be listed at any time on a designated stock exchange if

  • (a) the corporation is

    • (i) a life insurance corporation resident in Canada that has demutualized and that, at that time, would have satisfied conditions prescribed under subparagraph (b)(i) of the definition public corporation in subsection 89(1) if the words “shareholders, the dispersal of ownership of its shares and the public trading of its shares” in that subparagraph were read as “shareholders and the dispersal of ownership of its shares”, or

    • (ii) a holding corporation that is deemed by subsection (3) to be a public corporation at that time;

  • (b) no share of the capital stock of the corporation is listed on any stock exchange at that time; and

  • (c) that time is not later than six months after the time of the demutualization of

    • (i) the corporation, where the corporation is a life insurance corporation, and

    • (ii) in any other case, the life insurance corporation in respect of which the corporation is a holding corporation.