Income Tax Act — I-3.3 181.3
f (iv) the amount of its deferred tax debit balance at the end of the year, (v) the amount of any deficit deducted in computing its shareholders’ equity (including, for this purpose, the amount of any provision for the redemption of preferred shares) at the end of the year, and (vi) any amount deducted under subsection 130.1(1) or 137(2) in computing its income under Part I for the year, to the extent that the amount can reasonably be regarded as being included in the amount determined under subparagraph 181.3(3)(a)(i), 181.3(3)(a)(ii) or 181.3(3)(a)(iii) in respect of the institution for the year; (b) in the case of an insurance corporation that was resident in Canada at any time in the year and carried on a life insurance business at any time in the year, the amount determined by the formula A + B + (0.9 × C) − (0.9 × D) − E where A is the amount of the corporation’s long-term debt at the end of the year, B is the total amount, at the end of the year, of the corporation’s (i) capital stock (or, in the case of an insurance corporation incorporated without share capital, the amount of its members’ contributions), (ii) retained earnings, (iii) accumulated other comprehensive income, (iv) policyholders’ liabilities, (v) contributed surplus, and (vi) any other surpluses, C is the total of all amounts each of which is the contractual service margin for a group of insurance contracts of the corporation at the end of the year other than a group of segregated fund policies, D is the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the corporation at the end of the year, that is (i) if no portion of the contractual service margin for the group is in respect of a risk under a segregated fund policy, the contractual service margin for the group, 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 of the contractual service margin that is in respect of the reinsurance of risks under segregated fund policies, and E 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; (c) in the case of an insurance corporation that was resident in Canada at any time in the year and throughout the year did not carry on a life insurance business, the amount determined by the formula A + B + (0.9 × C) − (0.9 × D) + E − F − G where A is the amount of the corporation’s long-term debt at the end of the year, B is the total amount, at the end of the year, of the corporation’s (i) capital stock (or, in the case of an insurance corporation incorporated without share capital, the amount of its members’ contributions), (ii) retained earnings, (iii) accumulated other comprehensive income, (iv) policyholders’ liabilities, (v) contributed surplus, and (vi) any other surpluses, C is total of all amounts each of which is the contractual service margin for a group of insurance contracts of the corporation at the end of the year that is in respect of (i) 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 ), (ii) mortgage insurance (as defined in subsection 1408(1) of the Income Tax Regulations ), or (iii) title insurance (as defined in subsection 1408(1) of the Income Tax Regulations ), D is the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the corporation at the end of the year, that is (i) the contractual service margin for the group, if no portion of the contractual service margin 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 ac