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[1991, c. 47, assented to 13th December,
1991]
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| R.S., c. 1 (5th
Supp.)
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734. Section 139 of the Income Tax Act is
replaced by the following:
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| Conversion of
insurance
corporations
into mutual
corporations
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139. Where an insurance corporation that is
a Canadian corporation applies an amount in
payment for shares of the corporation
purchased or otherwise acquired by it under a
mutualization proposal under Division III of
Part VI of the Insurance Companies Act or
under a law of the province under the laws of
which the corporation is incorporated that
provides for the conversion of the corporation
into a mutual corporation by the purchase of
its shares in accordance with that law,
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(a) section 15 does not apply to require the
inclusion, in computing the income of a
shareholder of the corporation, of any part
of that amount; and
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(b) no part of that amount shall be deemed,
for the purpose of subsection 138(7), to
have been paid to shareholders or, for the
purpose of section 84, to have been received
as a dividend.
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| SI/92-91
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763. Section 734 is deemed to have come
into force on June 1, 1992.
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