Income Tax Act — I-3.3 219
t includes a share of the capital stock of the purchaser corporation, the total of all amounts each of which is an amount in respect of a disposition in the year of a qualified property equal to the amount, if any, by which (i) the fair market value of the qualified property at the time of the disposition exceeds the total of (ii) the amount, if any, by which the paid-up capital in respect of the issued and outstanding shares of the capital stock of the purchaser corporation increased because of the disposition, and (iii) the fair market value, at the time of receipt, of the consideration (other than shares) given by the purchaser corporation for the qualified property. Excluded gains (1.1) For the purposes of subsection (1), the definition taxable Canadian property in subsection 248(1) shall be read without reference to paragraphs (a) and (c) to (e) of that definition and as if the only options, interests or rights referred to in paragraph (f) of that definition were those in respect of property described in paragraph (b) of that definition. Exempt corporations (2) No tax is payable under this Part for a taxation year by a corporation that was, throughout the year, (a) [Repealed, 2001, c. 17, s. 177] (b) a corporation whose principal business was (i) the transportation of persons or goods, (ii) communications, or (iii) mining iron ore in Canada; or (c) a corporation exempt from tax under section 149. Provisions applicable to Part (3) Sections 150 to 152, 154, 158, 159 and 161 to 167 and Division J of Part I are applicable to this Part with such modifications as the circumstances require. Non-resident insurers (4) No tax is payable under subsection 219(1) for a taxation year by a non-resident insurer, but where it elects, in prescribed manner and within the prescribed time, to deduct, in computing its Canadian investment fund as of the end of the immediately following taxation year, an amount not greater than the amount, if any, by which (a) the amount, if any, by which the total of (i) the insurer’s surplus funds derived from operations as of the end of the year, and (i.1) where, in any particular taxation year that began before the end of the year, the insurer transferred to a taxable Canadian corporation with which it did not deal at arm’s length any designated insurance property of the insurer for the particular year, and (A) the property was transferred before December 16, 1987 and subsection 138(11.5) of the Income Tax Act , chapter 148 of the Revised Statutes of Canada, 1952, applied in respect of the transfer, or (B) the property was transferred before November 22, 1985 and subsection 85(1) of that Act applied in respect of the transfer, the amount, if any, by which (C) the total of the fair market value, at the time of the transfer, of all such property exceeds (D) the total of the insurer’s proceeds of disposition of all such property, exceeds the total of (ii) each amount on which the insurer has paid tax under this Part for a previous taxation year, (iii) the amount, if any, by which the insurer’s accumulated 1968 deficit exceeds the amount of the insurer’s maximum tax actuarial reserves for its 1968 taxation year for its life insurance policies in Canada, (iv) the insurer’s loss, if any, for each of its 5 consecutive taxation years ending with its 1968 taxation year, from all insurance businesses (other than its life insurance business) carried on by it in Canada (computed without reference to section 30 of the Income Tax Act , chapter 148 of the Revised Statutes of Canada, 1952, as it read in its application to those years), except to the extent that any such loss was deductible in computing its taxable income for any of its taxation years ending before 1969, and (v) the total of all amounts in respect of which the insurer 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 ins