Income Tax Regulations — 2411
2411 (1) Subject to subsection (2), the amount prescribed in respect of an insurer for a taxation year for the purposes of paragraph 138(9)(b) of the Act shall be the amount determined by the formula A - (B + B.1 + C) where A is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (3); B is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4) in respect of the insurer’s investment property for the year that is designated insurance property of the insurer for the year; B.1 is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4.1) in respect of property disposed of by the insurer in a taxation year for which it was designated insurance property of the insurer; and C is the amount claimed by the insurer for the year in respect of any balance of its cumulative excess account at the end of the year. (2) Where an amount computed under subsection (1) in respect of an insurer is a negative amount, that amount shall be deemed to be nil. (3) The positive or negative amount, as the case may be, determined under this subsection in respect of an insurer for a taxation year shall be (a) if the value for the year of the insurer’s foreign investment property that is designated insurance property for the year is not greater than 5% of the amount of the insurer’s mean Canadian investment fund for the year and the insurer so elects in its return of income under Part I of the Act for the year, the amount determined by the formula {[((A + A.1) / B) x (C + J)] + [(D x F) / E]} or (b) in any other case, the amount determined by the formula {[((A + A.1)/B) x C] + [(D x F)/E] + [((G + G.1)/H) x J]} where A is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4) in respect of Canadian investment property (other than Canadian equity property) owned by the insurer at any time in the year; A.1 is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4.1) in respect of Canadian investment property (other than Canadian equity property) disposed of by the insurer in the year or a preceding taxation year; B is the total value for the year of Canadian investment property (other than Canadian equity property and any property described in paragraph (i) of the definition Canadian investment property in subsection 2400(1)) owned by the insurer at any time in the year; C is the total value for the year of the insurer’s Canadian investment property for the year (other than Canadian equity property and any property described in paragraph (i) of the definition Canadian investment property in subsection 2400(1)) that is designated insurance property of the insurer for the year; D is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4) in respect of Canadian investment property that is Canadian equity property owned by the insurer at any time in the year; E is the total value for the year of Canadian investment property that is Canadian equity property (other than any property described in paragraph (i) of the definition Canadian investment property in subsection 2400(1)) owned by the insurer at any time in the year; F is the total value for the year of the insurer’s Canadian investment property (other than any property described in paragraph (i) of the definition Canadian investment property in subsection 2400(1)) for the year that is Canadian equity property that is designated insurance property of the insurer for the year; G is the positive or negative amount, as the case may be, determined in respect of the insurer for the year under subsection (4) in respect of foreign investment property owned by the insurer at any time in the year; G.1 is the positive o