Income Tax Act — I-3.3 181.3
Taxable capital employed in Canada of financial institution 181.3 (1) The taxable capital employed in Canada of a financial institution for a taxation year is the total of (a) the total of all amounts each of which is the carrying value at the end of the year of an asset of the financial institution (other than property held by the institution primarily for the purpose of resale that was acquired by the financial institution, in the year or the preceding taxation year, as a consequence of another person’s default, or anticipated default, in respect of a debt owed to the institution) that is tangible, or for civil law corporeal, property used in Canada and, in the case of a financial institution that is an insurance corporation, that is non-segregated property, within the meaning assigned by subsection 138(12), (b) the total of all amounts each of which is an amount in respect of a partnership in which the financial institution has an interest at the end of the year equal to that proportion of (i) the total of all amounts each of which is the carrying value of an asset of the partnership, at the end of its last fiscal period ending at or before the end of the year, that is tangible, or for civil law corporeal, property used in Canada that (ii) the financial institution’s share of the partnership’s income or loss for that period is of (iii) the partnership’s income or loss for that period, and (c) an amount that is equal to (i) in the case of a financial institution other than an insurance corporation, that proportion of its taxable capital for the year that its Canadian assets at the end of the year is of its total assets at the end of the year, (ii) in the case of an insurance corporation that was resident in Canada at any time during the year and carried on a life insurance business at any time in the year, the total of (A) that proportion of the amount, if any, by which the total of (I) its taxable capital for the year, and (II) the amount prescribed for the year in respect of the corporation exceeds (III) the amount prescribed for the year in respect of the corporation that its Canadian reserve liabilities as at the end of the year is of the total of (IV) its total reserve liabilities as at the end of the year, and (V) the amount prescribed for the year in respect of the corporation, and (B) [Repealed, 2009, c. 2, s. 61] (iii) in the case of an insurance corporation that was resident in Canada at any time in the year and throughout the year did not carry on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, that proportion of its taxable capital for the year that the total amount of its Canadian premiums for the year is of its total premiums for the year, and (iv) in the case of an insurance corporation that was throughout the year not resident in Canada and carried on an insurance business in Canada at any time in the year, its taxable capital for the year. Taxable capital of financial institution (2) The taxable capital of a financial institution for a taxation year is the amount, if any, by which its capital for the year exceeds its investment allowance for the year. Capital of financial institution (3) The capital of a financial institution for a taxation year is (a) in the case of a financial institution, other than an authorized foreign bank or an insurance corporation, the amount, if any, by which the total at the end of the year of (i) the amount of its long-term debt, (ii) the amount of its capital stock (or, in the case of an institution incorporated without share capital, the amount of its members’ contributions), retained earnings, contributed surplus and any other surpluses, and (iii) the amount of its reserves for the year, except to the extent that they were deducted in computing its income under Part I for the year, exceeds the total of (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