Income Tax Act — I-3.3 142.51
on year that can reasonably be attributed to the transferred business, (ii) any amount deducted under subsection (4) or included under subsection (5) in computing the transferor’s income for a taxation year of the transferor that begins before that time that can reasonably be attributed to the transferred business, and (iii) any amount that would — in the absence of this subsection and if the transferor existed and was an insurer on each day that includes that time or is a subsequent day and on which the transferee is an insurer — be required to be deducted or included, in respect of any of those days, under subsection (4) or (5) in computing the transferor’s income that can reasonably be attributed to the transferred business; and (b) in determining, in respect of the day that includes that time or any subsequent day, any amount that is required under subsection (4) or (5) to be deducted or included in computing the transferor’s income for each particular taxation year from the transferred business, the description of A in the formulas in those subsections is deemed to be nil. (10) [Repealed, 2022, c. 19, s. 28] Ceasing to carry on a business (11) If at any time, a taxpayer ceases to be an insurer (a) there shall be deducted, in computing the income of the taxpayer for the taxation year of the taxpayer that includes the time that is immediately before that time, the amount determined by the formula A – B where A is the amount included under subsection (2) in computing the taxpayer’s income for its transition year, and B is the total of all amounts each of which is an amount deducted under subsection (4) in computing the income of the taxpayer for a taxation year that began before that time; and (b) there shall be included, in computing the income of the taxpayer for the taxation year of the taxpayer that includes the time that is immediately before that time, the amount determined by the formula C – D where C is the amount deducted under subsection (3) in computing the taxpayer’s income for its transition year, and D is the total of all amounts each of which is an amount included under subsection (5) in computing the taxpayer’s income for a taxation year that began before that time. Ceasing to exist (12) If at any time a taxpayer ceases to exist (otherwise than as a result of a merger to which subsection 87(2) applies or a winding-up to which subsection 88(1) applies), for the purposes of subsection (11), the taxpayer is deemed to have ceased to be an insurer at the earlier of (a) the time (determined without reference to this subsection) at which the taxpayer ceased to be an insurer, and (b) the time that is immediately before the end of the last taxation year of the taxpayer that ended at or before the time at which the taxpayer ceased to exist. Application of subsection (13.1) (13) Subsection (13.1) applies to a taxpayer for a particular taxation year of the taxpayer if (a) the taxpayer holds a transition property in the particular taxation year; (b) the property was a mark-to-market property of the taxpayer for the taxation year preceding the particular taxation year; and (c) the property is not a mark-to-market property of the taxpayer for the particular taxation year. Ceasing to be mark-to-market property (13.1) If this subsection applies to a taxpayer for a particular taxation year of the taxpayer, for purposes of this section (a) the taxpayer is deemed to have ceased to be an insurer at the particular time that is the beginning of the particular taxation year; and (b) the time immediately before the particular time shall be deemed to be the end of the taxation year that ends immediately before the particular taxation year. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2009, c. 2, s. 48 2022, c. 19, s. 28