Income Tax Act — I-3.3 95
asonably be considered to have been issued by the life insurance corporation to the foreign affiliate (a) in respect of the life insurance corporation’s life insurance business carried on outside Canada; and (b) not in respect of (i) the life insurance corporation’s life insurance business carried on in Canada, or (ii) any other use. Definitions — subsections (2.43) to (2.45) (2.43) The following definitions apply in this subsection and subsections (2.44) and (2.45). Canadian indebtedness means indebtedness (other than upstream deposits) owed by persons resident in Canada or in respect of businesses carried on in Canada. ( dettes canadiennes ) eligible bank affiliate , of an eligible Canadian bank at any time, means a foreign bank that, at that time, is a controlled foreign affiliate (for the purposes of section 17) of the eligible Canadian bank and is described in subparagraph (a)(i) of the definition investment business in subsection (1). ( filiale bancaire admissible ) eligible Canadian bank means a bank listed in Schedule I to the Bank Act . ( banque canadienne admissible ) eligible Canadian indebtedness , owing to an eligible bank affiliate of an eligible Canadian bank, means bonds, debentures, notes or similar obligations of the Government of Canada, the government of a province, an agent of a province, a municipality in Canada or a municipal or public body performing a function of government in Canada, that are owing to the affiliate, other than property in respect of which paragraph (2)(a.3) does not apply because of subsection (2.31). ( dettes canadiennes admissibles ) eligible currency hedge , of an eligible bank affiliate of an eligible Canadian bank, means an agreement that provides for the purchase, sale or exchange of currency and that (a) can reasonably be considered to have been made by the affiliate to reduce its risk of fluctuations in the value of currency with respect to eligible Canadian indebtedness and upstream deposits owing to the affiliate; and (b) cannot reasonably be considered to have been made by the affiliate to reduce its risk with respect to property other than eligible Canadian indebtedness and upstream deposits owing to the affiliate. ( couverture de change admissible ) excess liquidity , of an eligible bank affiliate of an eligible Canadian bank for a taxation year of the affiliate, means the amount, if any, by which (a) the average of all amounts each of which is, in respect of a month that ends in the 12-month period that begins 60 days prior to the beginning of the year — or, if the affiliate was formed after the beginning of the period, in respect of a month that ends in the year — the amount of the affiliate’s relationship deposits for the month, expressed in the affiliate’s calculating currency for the year unless the context requires otherwise, exceeds (b) the average of all amounts each of which is, in respect of a month that ends in the period — or, if the affiliate was formed after the beginning of the period, in respect of a month that ends in the year — the amount of the affiliate’s organic assets for the month, expressed in the affiliate’s calculating currency for the year unless the context requires otherwise. ( liquidités excédentaires ) organic assets , of an eligible bank affiliate of an eligible Canadian bank for a month, means the total of all amounts in respect of the affiliate each of which is (a) included in the amounts reported as loans in the assets section of the consolidated monthly balance sheet accepted by the Superintendent of Financial Institutions that is filed for the month by the bank, or another corporation resident in Canada that is related to the bank at the end of the month, or (b) an amount owing to the affiliate by a person that is related to the affiliate (other than an amount described in paragraph (a)) but does not include the amount of an eligible Canadian indebtedness or upstream deposit owing to the affiliate. ( actif organique ) qualifying indebt