Income Tax Act — I-3.3 181.3
argin is in respect of a risk under an insurance policy other than an insurance policy that is in respect of (A) non-cancellable or guaranteed renewable accident and sickness policies in respect of accident and sickness insurance (as defined in subsection 1408(1) of the Income Tax Regulations ), (B) mortgage insurance (as defined in subsection 1408(1) of the Income Tax Regulations ), or (C) title insurance (as defined in subsection 1408(1) of the Income Tax Regulations ), and (ii) 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 risks under policies other than those described in any of clauses (i)(A) to (C), E is the amount of the corporation’s reserves for the year, except to the extent that they (i) were deducted in computing its income under Part I for the year, or (ii) are reserves in respect of the contractual service margin for a group of insurance contracts of the corporation at the end of the year, F is the total of all amounts each of which is the reinsurance contract held amount for a group of reinsurance contracts held by the corporation at the end of the year, to the extent the amount can be reasonably regarded as being included in the amount determined under the description of E, and G is the amount of any deficit deducted in computing the shareholders’ equity (including, for this purpose, the amount of any provision for the redemption of preferred shares) at the end of the year; (d) in the case of an insurance corporation that was throughout the year not resident in Canada and carried on an insurance business in Canada at any time in the year, the total at the end of the year of (i) the amount that is the greater of (A) the amount, if any, by which (I) the corporation’s surplus funds derived from operations (as defined in subsection 138(12)) as of the end of the year, computed as if no tax were payable under this Part or Part VI for the year exceeds the total of all amounts each of which is (II) an amount on which the corporation was required to pay, or would but for subsection 219(5.2) have been required to pay, tax under Part XIV for a preceding taxation year, except the portion, if any, of the amount on which tax was payable, or would have been payable, because of subparagraph 219(4)(a)(i.1), and (III) an amount on which the corporation was required to pay, or would but for subsection 219(5.2) have been required to pay, tax under subsection 219(5.1) for the year because of the transfer of an insurance business to which subsection 138(11.5) or 138(11.92) has applied, and (B) the corporation’s attributed surplus for the year, (ii) any other surpluses relating to its insurance businesses carried on in Canada, (iii) the amount of its long-term debt that may reasonably be regarded as relating to its insurance businesses carried on in Canada, and (iv) 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 may reasonably be regarded as having been established in respect of its insurance businesses carried on in Canada exceeds the total of (B) the total of 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 was included in the amount determined under clause 181.3(3)(d)(iv)(A) and was deducted in computing its income under Part I for the year, (C) the total of all amounts each of which is the amount of a reserve described in subparagraph 138(3)(a)(i) to the extent that it was included in the amount determined under clause 181.3(3)(d)(iv)(A) and was deductible under subparagraph 138(3)(a)(i) in computing its income under Part I for the year, and (D) [Repealed, 2022, c. 19, s. 44] (E) [Repealed, 2022, c. 19, s. 44] (F) the total of all amounts each of which is the reinsurance contract h