Income Tax Act — I-3.3 139.1
he mutual insurance corporation. ( droits de propriété ) person includes a partnership. ( personne ) share of the capital stock of a corporation includes a right granted by the corporation to acquire a share of its capital stock. ( action ) specified insurance benefit means a taxable conversion benefit that is (a) an enhancement of benefits under an insurance policy; (b) an issuance of an insurance policy; (c) an undertaking by an insurance corporation of an obligation to pay a policy dividend; or (d) a reduction in the amount of premiums that would otherwise be payable under an insurance policy. ( avantage déterminé ) stakeholder means a person who is entitled to receive or who has received a conversion benefit but, in respect of the demutualization of an insurance corporation, does not include a holding corporation in connection with the demutualization or a mutual holding corporation in respect of the insurance corporation. ( intéressé ) taxable conversion benefit means a conversion benefit received by a stakeholder in connection with the demutualization of an insurance corporation, other than a conversion benefit that is (a) a share of a class of the capital stock of the corporation; (b) a share of a class of the capital stock of a corporation that is or becomes a holding corporation in connection with the demutualization; or (c) an ownership right in a mutual holding corporation in respect of the insurance corporation. ( avantage de transformation imposable ) Rules of general application (2) For the purpose of this section, (a) subject to paragraphs (b) to (g), if in providing a benefit in respect of a demutualization, a corporation becomes obligated, either absolutely or contingently, to make or arrange a payment, the person to whom the undertaking to make or arrange the payment was given is considered to have received a benefit (i) as a consequence of the undertaking of the obligation, and (ii) not as a consequence of the making of the payment; (b) where, in providing a benefit in respect of a demutualization, a corporation makes a payment (other than a payment, made pursuant to the terms of an insurance policy, that is not a policy dividend) at any time on or before the deadline for the payment, (i) subject to paragraphs (f) and (g), the recipient of the payment is considered to have received a benefit as a consequence of the making of the payment, and (ii) no benefit is considered to have been received as a consequence of the undertaking of an obligation, that is either contingent or absolute, to make or arrange the payment; (c) no benefit is considered to have been received as a consequence of the undertaking of an absolute or contingent obligation of a corporation to make or arrange a payment (other than a payment, made pursuant to the terms of an insurance policy, that is not a policy dividend) unless it is reasonable to conclude that there is sufficient information with regard to the location of a person to make or arrange the payment; (d) where a corporation’s obligation to make or arrange a payment in connection with a demutualization ceases on or before the initial deadline for the payment and without the payment being made in whole or in part, no benefit is considered to have been received as a consequence of the undertaking of the obligation unless the payment was to be a payment (other than a policy dividend) pursuant to the terms of an insurance policy; (e) no benefit is considered to have been received as a consequence of the undertaking of an absolute or contingent obligation of a corporation to make or arrange a payment where (i) paragraph (a) would, but for this paragraph, apply with respect to the obligation, (ii) paragraph (d) would, if that paragraph were read without reference to the words “on or before the initial deadline for the payment”, apply in respect of the obligation, (iii) it is reasonable to conclude that there was not, before the initial deadline for the payment, sufficient information w