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Income Tax Regulations

Version of section 2407 from 2004-08-31 to 2013-06-25:


 For the purposes of paragraph 138(3.1)(b) of the Act, a life insurer’s 1977 excess policy dividend deduction is hereby prescribed to be the amount that is the lesser of

  • (a) the amount, if any, by which

    • (i) the amount determined under clause 138(3)(a)(iii)(A) of the Act for the insurer’s 1977 taxation year (determined without reference to paragraph 138(3.1)(b) of the Act),

    exceeds

    • (ii) the amount determined under clause 138(3)(a)(iii)(B) of the Act for the insurer’s 1977 taxation year; and

  • (b) the amount, if any, by which

    • (i) the insurer’s maximum tax actuarial reserve for its participating life insurance policies in Canada for its 1977 taxation year,

    exceeds the aggregate of

    • (ii) the amount that would have been the insurer’s maximum tax actuarial reserve for its participating life insurance policies in Canada for its 1977 taxation year if that reserve had been determined on the basis of the rules applicable to its 1978 taxation year,

    • (iii) the aggregate of all amounts payable to the insurer in respect of policy loans outstanding at the end of its 1977 taxation year in respect of participating life insurance policies in Canada, and

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

      • (A) the insurer’s maximum tax actuarial reserve for its participating life insurance policies in Canada for its 1968 taxation year,

      exceeds the aggregate of

      • (B) the amount that would have been the insurer’s maximum tax actuarial reserve for its participating life insurance policies in Canada for its 1968 taxation year if that reserve had been determined on the basis of the rules applicable to its 1978 taxation year, and

      • (C) the aggregate of all amounts payable to the insurer in respect of policy loans outstanding at the end of its 1968 taxation year in respect of participating life insurance policies in Canada.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/79-670, s. 4
  • SOR/88-165, s. 30(F)
  • SOR/94-686, s. 55(F)
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