Income Tax Regulations — 2400
2400 (1) The definitions in this subsection apply in this Part. attributed surplus of a non-resident insurer for a taxation year is the total of (a) the insurer’s property and casualty surplus for the year, and (b) either, (i) if the insurer elects for the year in prescribed form and manner, 50% of the total of (A) the amount that would have been determined at the end of the year in respect of the insurer under subparagraph (a)(ii) of the definition Canadian investment fund , and (B) the amount that would have been determined at the end of the preceding taxation year in respect of the insurer under subparagraph (a)(ii) of the definition Canadian investment fund , each amount being calculated as if throughout the year and the preceding taxation year the insurer had been a life insurer resident in Canada and had not carried on any insurance business other than a life insurance business or an accident and sickness insurance business, or (ii) if the insurer does not elect under subparagraph (i) for the year, 120% of the total of all amounts each of which is 50% of the amount determined in accordance with regulations or guidelines made under Part XIII of the Insurance Companies Act to be the margin of assets in Canada over liabilities in Canada required to be maintained by the insurer as at the end of the year or as at the end of the preceding taxation year in respect of an insurance business carried on in Canada (other than a property and casualty insurance business). ( surplus attribué ) Canadian business property of an insurer for a taxation year in respect of an insurance business means (a) if the insurer was resident in Canada throughout the year and did not carry on an insurance business outside Canada in the year, property used or held by it in the year in the course of carrying on the business in Canada; and (b) in any other case, designated insurance property of the insurer for the year in respect of the business. ( bien d’entreprise canadien ) Canadian equity property of a person or partnership (in this definition referred to as the taxpayer ) at any time means property of the taxpayer that is (a) a share of the capital stock of, or an income bond or income debenture issued by, a person (other than a corporation affiliated with the taxpayer) resident in Canada or a Canadian partnership; or (b) that proportion of property that is shares of the capital stock of an entity that is a corporation affiliated with the taxpayer or an interest in an entity that is a partnership or trust that (i) the total value for the taxation year or fiscal period of the entity that includes that time of Canadian equity property of the entity is of (ii) the total value for the year or period of all property of the entity. ( avoir canadien ) Canadian investment fund of an insurer at the end of a taxation year means (a) in the case of a life insurer resident in Canada, the total of (i) the amount of the insurer’s Canadian reserve liabilities as at the end of the year (to the extent that the amount exceeds the amount of surplus appropriations included in that amount), and (ii) the greater of (A) the amount determined by the formula C + ((D - E + F) x (G / H)) where C is 8% of the amount determined under subparagraph (i), D is the total of all amounts each of which is the amount of a deferred realized net gain or an amount expressed as a negative number of a deferred realized net loss of the insurer as at the end of the year, E is the total of all amounts each of which is the amount of an item reported as an asset that is owned by the insurer at the end of the year and is a share of the capital stock of, or a debt owing to the insurer by, a financial institution affiliated with the insurer, F is the total of all amounts each of which is the amount as at the end of the year of a debt assumed or incurred by the insurer in respect of the acquisition of an asset described in E (or another property for which an asset described in E is a substituted proper