Income Tax Act — I-3.3 181.3
i) in computing its income under Part I for the year, and (D) [Repealed, 2022, c. 19, s. 44] (E) [Repealed, 2022, c. 19, s. 44] (F) the total of all amounts each of which is the reinsurance contract held amount for a group of reinsurance contracts held by the corporation at the end of the year, to the extent the amount can be reasonably regarded as being included in the amount determined under clause (A); and (e) in the case of an authorized foreign bank, the total of (i) 10% of the total of all amounts, each of which is the risk-weighted amount at the end of the year of an on-balance sheet asset or an off-balance sheet exposure of the bank in respect of its Canadian banking business that the bank would be required to report under the OSFI risk-weighting guidelines if those guidelines applied and required a report at that time, and (ii) the total of all amounts, each of which is an amount at the end of the year in respect of the bank’s Canadian banking business that (A) if the bank were a bank listed in Schedule II to the Bank Act , would be required under the risk-based capital adequacy guidelines issued by the Superintendent of Financial Institutions and applicable at that time to be deducted from the bank’s capital in determining the amount of capital available to satisfy the Superintendent’s requirement that capital equal a particular proportion of risk-weighted assets and exposures, and (B) is not an amount in respect of a loss protection facility required to be deducted from capital under the Superintendent’s guidelines respecting asset securitization applicable at that time. Investment allowance of financial institution (4) The investment allowance for a taxation year of a corporation that is a financial institution is (a) in the case of a corporation that was resident in Canada at any time in the year, the total of all amounts each of which is the carrying value at the end of the year of an eligible investment of the corporation; (b) in the case of an insurance corporation that was throughout the year not resident in Canada, the total of all amounts each of which is the carrying value at the end of the year of an eligible investment of the corporation that was used or held by it in the year in the course of carrying on an insurance business in Canada; (c) in the case of an authorized foreign bank, the total of all amounts each of which is the amount at the end of the year, before the application of risk weights, that the bank would be required to report under the OSFI risk-weighting guidelines if those guidelines applied and required a report at that time, of an eligible investment used or held by the bank in the year in the course of carrying on its Canadian banking business; and (d) in any other case, nil. Interpretation (5) For the purpose of subsection (4), (a) an eligible investment of a corporation is a share of the capital stock or long-term debt (and, where the corporation is an insurance corporation, is non-segregated property within the meaning assigned by subsection 138(12)) of a financial institution that at the end of the year (i) is related to the corporation, (ii) is not exempt from tax under this Part, and (iii) is resident in Canada or can reasonably be regarded as using the proceeds of the share or debt in a business carried on by the institution through a permanent establishment (as defined by regulation) in Canada; and (b) a credit union and another credit union of which the credit union is a shareholder or member are deemed to be related to each other. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 181.3; 1994, c. 7, Sch. II, s. 148, Sch. VIII, s. 107, c. 21, s. 83; 1998, c. 19, s. 196; 2001, c. 17, s. 163; 2009, c. 2, s. 61; 2013, c. 34, ss. 148, 326 2022, c. 19, s. 44