Income Tax Act — I-3.3 138
rdance with subsection 138(11.6), paragraphs 138(11.5)(e) to 138(11.5)(m) and subsections 138(11.7) to 138(11.9) apply in respect of the transfer. Definitions (12) In this section, accumulated 1968 deficit [Repealed, 1997, c. 25, s. 39(16)] amount payable , in respect of a policy loan at a particular time, means the amount of the policy loan and the interest thereon that is outstanding at that time; ( montant payable ) base year of an insurer means the insurer’s taxation year that immediately precedes its transition year; ( année de base ) Canada security [Repealed, 1995, c. 21, s. 57(15)] contractual service margin for a group of insurance contracts of an insurer, or a group of reinsurance contracts held by the insurer, at the end of a taxation year, means the greater of the positive or negative amount of the contractual service margin for the group (a) that would be reported as at the end of the taxation year if the amount were determined without reference to amounts described in subparagraphs (a)(i) to (iii) of the definition liability for remaining coverage in this subsection, and (b) that would be determined at the end of the taxation year in respect of the group in accordance with International Financial Reporting Standards using reasonable assumptions in the circumstances if the amount were determined without reference to amounts described in subparagraphs (a)(i) to (iii) of the definition liability for remaining coverage in this subsection; ( marge sur services contractuels ) cost [Repealed, 1995, c. 21, s. 57(15)] deposit accounting insurance policy in respect of an insurer’s taxation year means an insurance policy of the insurer that, according to International Financial Reporting Standards, is not an insurance contract for that taxation year; ( police d’assurance à comptabilité de dépôt ) designated foreign insurance business , of a life insurer resident in Canada in a taxation year, means an insurance business that is carried on by the life insurer in a country other than Canada in the year unless more than 90% of the gross premium revenue from the business for the year from the insurance of risks (net of reinsurance ceded) is in respect of the insurance of risks (other than specified Canadian risks) of persons with whom the life insurer deals at arm’s length; ( entreprise d’assurance étrangère désignée ) designated insurance property for a taxation year of an insurer (other than an insurer resident in Canada that at no time in the year carried on a life insurance business) that, at any time in the year, carried on an insurance business in Canada and in a country other than Canada, means property determined in accordance with prescribed rules except that, in its application to any taxation year, designated insurance property for the 1998 or a preceding taxation year means property that was, under this subsection as it read in its application to taxation years that ended in 1996, property used by it in the year in, or held by it in the year in the course of, carrying on an insurance business in Canada; ( bien d’assurance désigné ) excluded policy in respect of an insurer’s base year means an insurance policy of the insurer that would be a deposit accounting insurance policy for the insurer’s base year if International Financial Reporting Standards applied for that base year; ( police exclue ) gross investment revenue of an insurer for a taxation year means the amount determined by the formula A + B + C + D + E + F - G where A is the total of the following amounts included in its gross revenue for the year: (a) taxable dividends, and (b) amounts received or receivable as, on account of, in lieu of or in satisfaction of, interest, rentals or royalties, other than amounts in respect of debt obligations to which subsection 142.3(1) applies for the year, B is its income for the year from each trust of which it is a beneficiary, C is its income for the year from each partnership of which it is a member, D is the total of