Income Tax Act — I-3.3 219
nsurer has filed an election under subsection 219(5.2) for a previous taxation year in accordance with that subsection, exceeds (b) the amount of the insurer’s attributed surplus for the year, the insurer shall, on or before the day on or before which it is required to file a return under Part I for the year, pay a tax for the year equal to 25% of the amount, if any, by which the amount it has so elected to deduct exceeds the amount in respect of which it filed an election under subsection 219(5.2) for the year in accordance with that subsection. Additional tax on insurer (5.1) Where a non-resident insurer ceases in a taxation year to carry on all or substantially all of an insurance business in Canada, it shall, on or before its filing-due date for the year, pay a tax for the year equal to 25% of the amount, if any, by which (a) that portion of the amount determined under paragraph 219(4)(a) for the year in respect of the insurer that can reasonably be attributed to the business, including the disposition by it of property that was its designated insurance property in respect of the business for the year in which the disposition occurred, exceeds (b) the amount the insurer and a qualified related corporation of the insurer jointly elect in accordance with subsection 219(5.2) for the year in respect of the business. Election by non-resident insurer (5.2) Where (a) a non-resident insurer has ceased to carry on all or substantially all of an insurance business in Canada in a taxation year, and (b) the insurer has transferred the business to a qualified related corporation of the insurer and the insurer and the corporation have elected to have subsection 138(11.5) apply in respect of the transfer, the insurer and the corporation may elect, in prescribed manner and within prescribed time, to reduce the amount in respect of which the insurer would otherwise be liable to pay tax under subsection 219(5.1) by an amount not exceeding the lesser of (c) the amount determined under paragraph 219(5.1)(a) in respect of the insurer in respect of the business, and (d) the total of the paid-up capital of the shares of the capital stock of the corporation received by the insurer as consideration for the transfer of the business and any contributed surplus arising on the issue of those shares. Deemed payment of dividend (5.3) Where, at any time in a taxation year, (a) a qualified related corporation of a non-resident insurer ceases to be a qualified related corporation of that insurer, or (b) the tax deferred account of a qualified related corporation of a non-resident insurer exceeds the total of the paid-up capital in respect of all the shares of the capital stock of the corporation and its contributed surplus, the corporation shall be deemed to have paid, immediately before that time, a dividend to the insurer in an amount equal to (c) where paragraph 219(5.3)(a) is applicable, the balance of the tax deferred account of the corporation at that time, or (d) where paragraph 219(5.3)(b) is applicable, the amount of the excess referred to in that paragraph at that time. Definitions (7) In this Part, accumulated 1968 deficit of a life insurer means such amount as can be established by the insurer to be its deficit as of the end of its 1968 taxation year from carrying on its life insurance business in Canada on the assumption that the amounts of its assets and liabilities (including reserves of any kind) (a) as of the end of any taxation year before its 1968 taxation year, were the amounts thereof determined for the purposes of the Superintendent of Insurance for Canada or other similar officer, and (b) as of the end of its 1968 taxation year, were (i) in respect of depreciable property, the capital cost thereof as of the first day of its 1969 taxation year, (ii) in respect of policy reserves, the insurer’s maximum tax actuarial reserves for its 1968 taxation year for life insurance policies issued by it in the course of carrying on its life insura