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Income Tax Regulations

This version of section 1405 is in force from 2004-08-31 to 2009-03-11.
 


1405. For the purpose of subparagraph 138(3)(a)(ii) of the Act, there may be deducted in computing a life insurer’s income for a taxation year the amount it claims as a reserve in respect of an unpaid claim received by the insurer before the end of the year under a life insurance policy in Canada that is a post-1995 life insurance policy, not exceeding the lesser of

  • (a) the reported reserve of the insurer at the end of the year in respect of the claim, and

  • (b) the policy liability of the insurer at the end of the year in respect of the claim.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/79-425, s. 1;
  • SOR/94-686, s. 79(F);
  • SOR/99-269, s. 6.