Income Tax Act — I-3.3 137.1
sociation or a credit union that is a shareholder or member of a central that is a member of the Canadian Payments Association, (c) any money of the corporation, and (d) in relation to a particular deposit insurance corporation, debt obligations of, and shares of the capital stock of, a subsidiary wholly-owned corporation of the particular corporation where the subsidiary is deemed by subsection 137.1(5.1) to be a deposit insurance corporation; ( bien de placement ) member institution , in relation to a particular deposit insurance corporation, means (a) a corporation whose liabilities in respect of deposits are insured by, or (b) a credit union that is qualified for assistance from that deposit insurance corporation. ( institution membre ) Deeming provision (5.1) For the purposes of this section, other than subsection 137.1(2), paragraph 137.1(3)(d), subparagraph 137.1(3)(e)(i), subsection 137.1(9) and paragraph 11(a), a subsidiary wholly-owned corporation of a particular corporation described in the definition deposit insurance corporation in subsection 137.1(5) shall be deemed to be a deposit insurance corporation, and any member institution of the particular corporation shall be deemed to be a member institution of the subsidiary, where all or substantially all of the property of the subsidiary has at all times since the subsidiary was incorporated consisted of (a) investment property; (b) shares of the capital stock of a member institution of the particular corporation obtained by the subsidiary at a time when the member institution was in financial difficulty; (c) debt obligations issued by a member institution of the particular corporation at a time when the member institution was in financial difficulty; (d) property acquired from a member institution of the particular corporation at a time when the member institution was in financial difficulty; or (e) any combination of property described in paragraphs 137.1(5.1)(a) to 137.1(5.1)(d). Deemed not to be a private corporation (6) Notwithstanding any other provision of this Act, a deposit insurance corporation that would, but for this subsection, be a private corporation shall be deemed not to be a private corporation. Deposit insurance corporation deemed not a credit union (7) Notwithstanding any other provision of this Act, a deposit insurance corporation that would, but for this subsection, be a credit union shall be deemed not to be a credit union. Deemed compliance (8) For the purposes of subsection 137.1(5), a corporation shall be deemed to have complied with clause (a)(ii)(B) of the definition deposit insurance corporation in subsection 137.1(5) throughout the 1975 taxation year if it complied with that clause on the last day of that taxation year. Special tax rate (9) The tax payable under this Part by a corporation for a taxation year throughout which it was a deposit insurance corporation (other than a corporation incorporated under the Canada Deposit Insurance Corporation Act ) is the amount determined by the formula: (38% - A) × B where A is the rate that would, if subsection 125(1.1) applied to the corporation for the taxation year, be the corporation’s small business deduction rate for the taxation year within the meaning assigned by that subsection; and B is the corporation’s taxable income for the taxation year. Amounts paid by a deposit insurance corporation (10) Where in a taxation year a taxpayer is a member institution, there shall be included in computing its income for the year the total of all amounts each of which is (a) an amount received by the taxpayer in the year from a deposit insurance corporation that is an amount described in any of paragraphs 137.1(4)(a) to 137.1(4)(c), to the extent that the taxpayer has not repaid the amount to the deposit insurance corporation in the year, (b) an amount received from a deposit insurance corporation in the year by a depositor or member of the taxpayer as, on account of, in lieu of payment of, or in satis