Income Tax Act — I-3.3 138
mount if the amount is reported as a liability. IFRS reference (12.2) Except as otherwise provided, references to International Financial Reporting Standards in this section refer to the International Financial Reporting Standards adopted by the Accounting Standards Board and effective for years that begin on or after January 1, 2023. Amount reported (12.3) A reference in subsections (12) and 138.1(1) of this Act and Parts XIV, XXIV and LXXXVI of the Income Tax Regulations to an amount that is reported, or that would be reported, of an insurer as at the end of a taxation year means (a) if the insurer is the Canada Mortgage and Housing Corporation or a foreign affiliate of a taxpayer resident in Canada, an amount that is reported, or that would be reported, in the insurer’s financial statements for the year if those statements were prepared in accordance with International Financial Reporting Standards; (b) if paragraph (a) does not apply and reporting by the insurer to the insurer’s relevant authority is required at the end of the year, an amount that is reported, or that would be reported, in the insurer’s non-consolidated balance sheet for the year accepted by the insurer’s relevant authority; (c) if paragraphs (a) and (b) do not apply and the insurer is, throughout the year, subject to the supervision of its relevant authority, an amount that is reported, or that would be reported, in a non-consolidated balance sheet for the year that is prepared in a manner consistent with the requirements that would have applied had reporting to the insurer’s relevant authority been required at the end of the year; and (d) in any other case, nil. Variation in tax basis and amortized cost (13) Where (a) in a taxation year that ended after 1968 and before 1978 an insurer carried on a life insurance business in Canada and an insurance business in a country other than Canada, (b) the insurer did not make an election in respect of the year under subsection 138(9) of the Income Tax Act , chapter 148 of the Revised Statutes of Canada, 1952, as it applied to that year, and (c) the ratio of the value for the year of the insurer’s specified Canadian assets to its Canadian investment fund for the year exceeded one, each of the amounts included or deducted as follows in respect of the year shall be multiplied by the ratio referred to in paragraph 138(13)(c): (d) under paragraph (c), (d), (k) or (l) of the definition tax basis in subsection 142.4(1) in determining the tax basis of a debt obligation to the insurer, or (e) under paragraph (c), (d), (f) or (h) of the definition amortized cost in subsection 248(1) in determining the amortized cost of a debt obligation to the insurer. Meaning of certain expressions (14) For the purposes of subsection 138(13), the expressions Canadian investment fund for a taxation year , specified Canadian assets and value for the taxation year have the meanings prescribed therefor. Definition not to apply (15) In this section, in construing the meaning of the expression group term insurance policy , the definition group term life insurance policy in subsection 248(1) does not apply. Transition year income inclusion (16) There shall be included in computing an insurer’s income for its transition year from an insurance business carried on by it in the transition year the positive amount, if any, of the insurer’s reserve transition amount in respect of that insurance business. Transition year income deduction (17) There shall be deducted in computing an insurer’s income for its transition year from an insurance business carried on by it in the transition year the absolute value of the negative amount, if any, of the insurer’s reserve transition amount in respect of that insurance business. IFRS transition — reversals (17.1) In applying subsections (18) and (19) to an insurer for a taxation year of the insurer in respect of International Financial Reporting Standards, (a) the reference to “policy reserve” in the description o