Income Tax Act — I-3.3 138
42.3, 142.5 and 142.51 apply only in respect of property that is designated insurance property for the year in respect of the business; and (b) section 142.4 applies only in respect of the disposition of property that, for the taxation year in which the insurer disposed of it, was designated insurance property in respect of the business. (11) [Repealed, 1995, c. 21, s. 57(7)] Identical properties (11.1) For the purpose of section 47, any property of a life insurance corporation that would, but for this subsection, be identical to any other property of the corporation is deemed not to be identical to the other property unless both properties are (a) designated insurance property of the insurer in respect of a life insurance business carried on in Canada; or (b) designated insurance property of the insurer in respect of an insurance business in Canada other than a life insurance business. Computation of capital gain on pre-1969 depreciable property (11.2) For the purposes of computing the amount of a capital gain from the disposition of any depreciable property acquired by a life insurer before 1969, the capital cost of the property to the insurer shall be its capital cost determined without reference to paragraph 32(1)(a) of An Act to amend the Income Tax Act , chapter 44 of the Statutes of Canada, 1968-69, as it read in its application to the 1971 taxation year. Deemed disposition (11.3) Subject to subsection 138(11.31), where a property of a life insurer resident in Canada that carries on an insurance business in Canada and in a country other than Canada or of a non-resident insurer is (a) designated insurance property of the insurer for a taxation year, was owned by the insurer at the end of the preceding taxation year and was not designated insurance property of the insurer for that preceding year, or (b) not designated insurance property for a taxation year, was owned by the insurer at the end of the preceding taxation year and was designated insurance property of the insurer for that preceding year, the following rules apply: (c) the insurer is deemed to have disposed of the property at the beginning of the year for proceeds of disposition equal to its fair market value at that time and to have reacquired the property immediately after that time at a cost equal to that fair market value, (d) where paragraph (a) applies, any gain or loss arising from the disposition is deemed not to be a gain or loss from designated insurance property of the insurer in the year, and (e) where paragraph (b) applies, any gain or loss arising from the disposition is deemed to be a gain or loss from designated insurance property of the insurer in the year. Exclusion from deemed disposition (11.31) Subsection 138(11.3) does not apply (a) to deem a disposition in a taxation year of a property of an insurer where subsection 142.5(2) deemed the insurer to have disposed of the property in its preceding taxation year; nor (b) for the purposes of paragraph 20(1)(l), the description of A and paragraph (b) of the description of F in the definition undepreciated capital cost in subsection 13(21) and the definition designated insurance property in subsection 138(12). Deduction of loss (11.4) Notwithstanding any other provision of this Act, where an insurer has a loss for a taxation year from the disposition, because of subsection 138(11.3), of a property other than a specified debt obligation (as defined in subsection 142.2(1)), and the loss would, but for this subsection, have been deductible in the year, the loss shall be deductible only in the taxation year in which the taxpayer disposes of the property otherwise than because of subsection 138(11.3). (11.41) [Repealed, 1995, c. 21, s. 57(12)] Transfer of insurance business by non-resident insurer (11.5) Where (a) a non-resident insurer (in this subsection referred to as the “transferor”) has, at any time in a taxation year, ceased to carry on all or substantially all of an insurance business carried o