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Income Tax Regulations

Version of section 8600 from 2023-01-01 to 2024-02-06:


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  • (c) [Repealed, 2013, c. 33, s. 38]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

contractual service margin

contractual service margin for a group of insurance contracts of an insurer, or a group of reinsurance contracts held by the insurer, at the end of a taxation year, has the same meaning as in subsection 138(12) of the Act; (marge sur services contractuels)

group of insurance contracts

group of insurance contracts of an insurer has the same meaning as in subsection 138(12) of the Act; (groupe de contrats d’assurance)

group of reinsurance contracts

group of reinsurance contracts held by an insurer has the same meaning as in subsection 138(12) of the Act; (groupe de contrats de réassurance)

group of segregated fund policies

group of segregated fund policies of an insurer has the same meaning as in subsection 138(12) of the Act; (groupe de polices à fonds réservé)

permanent establishment

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

policyholders’ liabilities

policyholders’ liabilities of an insurer at the end of a taxation year has the same meaning as in subsection 138(12) of the Act; (obligation envers les titulaires de polices)

reinsurance contract held amount

reinsurance contract held amount for a group of reinsurance contracts held by an insurer at the end of a taxation year has the same meaning as in subsection 138(12) of the Act; (montant au titre des contrats de réassurance détenus)

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 − A.1 + A.2 + A.3 − (0.9 × B) − (C − (0.9 × D))

where

A
is the total of the insurer’s liabilities and reserves including liabilities for segregated fund guarantees (other than policyholders’ liabilities or a liability for an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply) as at the end of the year in respect of 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;
A.1
is the total of all amounts each of which is the amount of an item reported by the insurer as an insurance contract asset as at the end of the year;
A.2
is the total of all amounts each of which is an amount of funds withheld as at the end of the year by the insurer in respect of the reinsurance of a risk under an insurance policy;
A.3
is the total of all amounts each which is an amount recoverable as at the end of the year by the insurer under a funds withheld arrangement in respect of the reinsurance of a risk by the insurer under an insurance policy;
B
is the total of all amounts each of which is the contractual service margin for a group of insurance contracts (other than a group of segregated fund policies) of the insurer at the end of the year;
C
is the total of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that is
  • (a) the reinsurance contract held amount for the group, if there is no reinsurance contract held amount for the group that is in respect of the reinsurance of an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, and

  • (b) in any other case, the amount that would be the reinsurance contract held amount for the group if the reinsurance contract held amount were determined excluding any portion that is in respect of the reinsurance of an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply; and

D
is the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that is
  • (a) if no portion of the contractual service margin for the group is in respect of a risk under a segregated fund policy, the contractual service margin for the group, and

  • (b) in any other case, the amount that would be the contractual service margin for the group if the contractual service margin were determined excluding any portion that is in respect of the reinsurance of a risk under a segregated fund policy. (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
  • 2022, c. 19, s. 90

Date modified: