Income Tax Act — I-3.3 137.1
nsurance corporation in the year, (b) an amount received from a deposit insurance corporation in the year by a depositor or member of the taxpayer as, on account of, in lieu of payment of, or in satisfaction of, deposits with, or share capital of, the taxpayer, to the extent that the taxpayer has not repaid the amount to the deposit insurance corporation in the year, or (c) the amount by which (i) the principal amount of any obligation of the taxpayer to pay an amount to a deposit insurance corporation that is settled or extinguished in the year without any payment by the taxpayer or by the payment by the taxpayer of an amount less than the principal amount exceeds (ii) the amount, if any, paid by the taxpayer on the settlement or extinguishment of the obligation to the extent that the excess is not otherwise required to be included in computing the taxpayer’s income for the year or a preceding taxation year. Principal amount of an obligation to pay interest (10.1) For the purposes of paragraph 137.1(10)(c), an amount of interest payable by a member institution to a deposit insurance corporation on an obligation shall be deemed to have a principal amount equal to that amount. Deduction by member institutions (11) There may be deducted in computing the income for a taxation year of a taxpayer that is a member institution such of the following amounts as are applicable: (a) any amount paid or payable by the taxpayer in the year that is described in subsection 137.1(2) to the extent that it was not deducted in computing the taxpayer’s income for a preceding taxation year; and (b) any amount repaid by the taxpayer in the year to a deposit insurance corporation on account of an amount described in paragraph 137.1(10)(a) or 137.1(10)(b) that was received in a preceding taxation year to the extent that it was not, by reason of subsection 137.1(12), excluded from the taxpayer’s income for the preceding year. Repayment excluded (12) Where (a) a member institution has in a taxation year repaid an amount to a deposit insurance corporation on account of an amount that was included by virtue of paragraph 137.1(10)(a) or 137.1(10)(b) in computing its income for a preceding taxation year, (b) the member institution has filed its return of income required by section 150 for the preceding year, and (c) on or before the day on or before which the member institution is required by section 150 to file a return of income for the taxation year, it has filed an amended return for the preceding year excluding from its income for that year the amount repaid, the amount repaid shall be excluded from the amount otherwise included by virtue of paragraph 137.1(10)(a) or 137.1(10)(b) in computing the member institution’s income for the preceding year and the Minister shall make such reassessment of the tax, interest and penalties payable by the member institution for preceding taxation years as is necessary to give effect to the exclusion. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 137.1; 1994, c. 21, s. 65; 2001, c. 17, s. 216; 2007, c. 2, s. 38; 2013, c. 34, s. 285