Income Tax Act — I-3.3 137.1
Amounts included in income of deposit insurance corporation 137.1 (1) For the purpose of computing the income for a taxation year of a taxpayer that is a deposit insurance corporation, the following rules apply: (a) the corporation’s income shall, except as otherwise provided in this section, be computed in accordance with the rules applicable in computing income for the purposes of this Part; and (b) there shall be included in computing the corporation’s income such of the following amounts as are applicable: (i) the total of profits or gains made in the year by the corporation in respect of bonds, debentures, mortgages, hypothecary claims, notes or other similar obligations owned by it that were disposed of by it in the year, and (ii) the total of each such portion of each amount, if any, by which the principal amount, at the time it was acquired by the corporation, of a bond, debenture, mortgage, hypothecary claim, note or other similar obligation owned by the corporation at the end of the year exceeds the cost to the corporation of acquiring it as was included by the corporation in computing its profit for the year. Amounts not included in income (2) The following amounts shall not be included in computing the income of a deposit insurance corporation for a taxation year: (a) any premium or assessment received, or receivable, by the corporation in the year from a member institution; and (b) any amount received by the corporation in the year from another deposit insurance corporation to the extent that that amount can reasonably be considered to have been paid out of amounts referred to in paragraph (a) received by that other deposit insurance corporation in any taxation year. Amounts deductible in computing income of deposit insurance corporation (3) There may be deducted in computing the income for a taxation year of a taxpayer that is a deposit insurance corporation such of the following amounts as are applicable: (a) the total of losses sustained in the year by the corporation in respect of bonds, debentures, mortgages, hypothecary claims, notes or other similar obligations owned by it and issued by a person other than a member institution that were disposed of by it in the year; (b) the total of each such portion of each amount, if any, by which the cost to the corporation of acquiring a bond, debenture, mortgage, hypothecary claim, note or other similar obligation owned by the corporation at the end of the year exceeds the principal amount of the bond, debenture, mortgage, hypothecary claim, note or other similar obligation, as the case may be, at the time it was so acquired as was deducted by the corporation in computing its profit for the year; (d) the total of all expenses incurred by the taxpayer in collecting premiums or assessments from member institutions; (e) the total of all expenses incurred by the taxpayer (i) in the performance of its duties as curator of a bank, or as liquidator or receiver of a member institution when duly appointed as such a curator, liquidator or receiver, (ii) in the course of making or causing to be made such inspections as may reasonably be considered to be appropriate for the purposes of assessing the solvency or financial stability of a member institution, and (iii) in supervising or administering a member institution in financial difficulty; and (f) the total of all amounts each of which is an amount that is not otherwise deductible by the taxpayer for the year or any other taxation year and that is (i) an amount paid by the taxpayer in the year pursuant to a legal obligation to pay interest on borrowed money used (A) to lend money to, or otherwise provide assistance to, a member institution in financial difficulty, (B) to assist in the payment of any losses suffered by members or depositors of a member institution in financial difficulty, (C) to lend money to a subsidiary wholly-owned corporation of the taxpayer where the subsidiary is deemed by subsection 137.1(5.1) to be a dep