Income Tax Regulations — 2400
p is in respect of the reinsurance of (i) a risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of H, or (ii) an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, and (b) in any other case, the amount that would be the reinsurance contract held amount for the group if the amount were determined excluding any portion that is in respect of the reinsurance of either (i) a risk under a policy other than a policy that meets the condition under subparagraph (a)(i) of the description of H, or (ii) an obligation to pay a benefit under a segregated fund policy in respect of which subparagraphs 1406(b)(i) and (ii) apply, and J is the total of all amounts each of which is the amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that is (a) if no portion of the contractual service margin for the group is in respect of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of H, the contractual service margin for the group, and (b) in any other case, the amount that would be the contractual service margin for the group if the amount were determined excluding any portion that is in respect of the reinsurance of a risk under a policy other than a policy that meets the conditions in subparagraphs (a)(i) to (iii) of the description of H. ( passif total pondéré ) Carrying Value (2) For the purposes of this Part, the carrying value of a taxpayer’s property for a taxation year, except as otherwise provided in this Part, means (a) if the taxpayer is an insurer, the amounts reflected in the taxpayer’s non-consolidated balance sheet as at the end of the taxation year accepted (or, if that non-consolidated balance sheet was not prepared, the taxpayer’s non-consolidated balance sheet as at the end of the year that would have been accepted) by the Superintendent of Financial Institutions, in the case of an insurer that is required under the Insurance Companies Act to report to that Superintendent, or by the superintendent of insurance or other similar officer or authority of the province under the laws of which the insurer is incorporated or otherwise formed, in the case of an insurer that is required by law to report to that officer or authority; and (b) in any other case, the amounts that would be reflected in the taxpayer’s non-consolidated balance sheet as at the end of the taxation year if that balance sheet were prepared in accordance with generally accepted accounting principles. (3) [Repealed, 2022, c. 19, s. 85] Application of Certain Definitions (4) For the purposes (a) of subsection 138(14) of the Act, the expressions “Canadian investment fund for a taxation year”, “specified Canadian assets” and “value for the taxation year” have the meanings prescribed for them by subsection 2404(1) as it read in its application to the 1977 taxation year; and (b) of subsection 219(7) of the Act, the expressions “attributed surplus” and “Canadian investment fund” have the meaning prescribed for them by subsection (1). Deeming Rules for Certain Assets (5) For the purposes of this Part, other than subsection 2401(6), an asset of an insurer is deemed not to have been used or held by the insurer in a taxation year in the course of carrying on an insurance business if the asset (a) is owned by the insurer at the end of the year; and (b) is a share of the capital stock of, or a debt owing to the insurer by, a financial institution affiliated with the insurer during each of the days in the year during which the insurer owned the asset. (6) For the purposes of clause (a)(ii)(B) of the definition Canadian investment fund in subsection (1), an asset of an insurer is deemed not to have been used or held by the insurer in a taxation year in the course of carrying on an insurance business if the asset (a) is owned by the insurer at the