Income Tax Regulations

8600 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 the total of

• (b) the investment allowance of the corporation for the year determined under subsection 181.3(4) of the Act, and

• (c) the total of all amounts each of which is the amount outstanding at the end of the year on account of a deposit made by the corporation that is described in paragraph (c) of the definition eligible loan in subsection 33.1(1) of the Act; (actif canadien)

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))

permanent establishment

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

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 – B

where

A

is the total amount as at the end of the year of the insurer’s liabilities and reserves (other than liabilities and reserves in respect of a segregated fund within the meaning assigned by subsection 138(12) of the Act) in respect of all its 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, and

B

is the total of the reinsurance recoverable (within the meaning assigned by subsection 2400(1)) reported as a reinsurance asset by the insurer as at the end of the year relating to its liabilities and reserves in A. (passif total de réserve)