Income Tax Act

Version of section 190.11 from 2004-08-31 to 2009-03-11:

Marginal note:Taxable capital employed in Canada

 For the purposes of this Part, the taxable capital employed in Canada of a financial institution for a taxation year is,

  • (a) in the case of a financial institution other than a life insurance corporation, that proportion of its taxable capital for the year that its Canadian assets at the end of the year is of its total assets at the end of the year;

  • (b) in the case of a life insurance corporation that was resident in Canada at any time in the year, the total of

    • (i) that proportion of the amount, if any, by which the total of

      • (A) its taxable capital for the year, and

      • (B) the amount prescribed for the year in respect of the corporation

      exceeds

      • (C) the amount prescribed for the year in respect of the corporation

      that its Canadian reserve liabilities as at the end of the year is of the total of

      • (D) its total reserve liabilities as at the end of the year, and

      • (E) the amount prescribed for the year in respect of the corporation, and

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

      • (A) the amount of its reserves for the year (other than its reserves in respect of amounts payable out of segregated funds) that can reasonably be regarded as having been established in respect of its insurance businesses carried on in Canada

      exceeds the total of

      • (B) all amounts each of which is the amount of a reserve (other than a reserve described in subparagraph 138(3)(a)(i)), to the extent that it is included in the amount determined under clause 190.11(b)(ii)(A) and is deducted in computing its income under Part I for the year,

      • (C) all amounts each of which is the amount of a reserve described in subparagraph 138(3)(a)(i), to the extent that it is included in the amount determined under clause 190.11(b)(ii)(A) and is deductible under subparagraph 138(3)(a)(i) in computing its income under Part I for the year, and

      • (D) all amounts each of which is the amount outstanding (including any interest accrued thereon) at the end of the year in respect of a policy loan (within the meaning assigned by subsection 138(12)) made by the corporation, to the extent that it is deducted in computing the total determined under clause 190.11(b)(ii)(C); and

  • (c) in the case of a life insurance corporation that was non-resident throughout the year, its taxable capital for the year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 190.11;
  • 1994, c. 7, Sch. II, s. 158, c. 21, s. 88.
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