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Labour- sponsored funds tax credit limit
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(5) For the purpose of subsection (2), an
individual's labour-sponsored funds tax credit
limit for a taxation year is the lesser of
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Labour-
sponsored
funds tax
credit
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(6) For the purposes of subsections (4) and
(5), an individual's labour-sponsored funds
tax credit in respect of an original acquisition
of an approved share is equal to the least of
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(5) Subsections (1) and (2) and
subsections 127.4(3) to (6) of the Act, as
enacted by subsection (4), apply to the 1996
and subsequent taxation years, except that,
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(5) For the purpose of subsection (2), an
individual's labour-sponsored funds tax credit
limit for a taxation year is the lesser of
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(6) Subsection (3) applies after 1995.
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(7) Subsection 127.4(2) of the Act, as
enacted by subsection (4), applies to the
1996 and subsequent taxation years and, for
the 1992 to 1995 taxation years, subsection
127.4(2) of the Act shall be read as follows:
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(2) There may be deducted from the tax
otherwise payable by an individual (other than
a trust) for a taxation year the lesser of $1,000
and the individual's labour-sponsored funds
tax credit (determined as if an approved share
in respect of which an individual receives a
payment under section 211.9 had never been
either acquired nor irrevocably subscribed and
paid for).
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38. (1) The portion of subsection
127.41(3) of the Act before paragraph (a) is
replaced by the following:
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Deemed
payment of
Part I tax
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(3) There is deemed to have been paid on
account of the tax payable under this Part by
a taxpayer (other than a taxpayer exempt from
such tax) for a taxation year on the taxpayer's
balance-due day for the year, such amount as
the taxpayer claims not exceeding the amount,
if any, by which
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(2) Subsection (1) applies to the 1996 and
subsequent taxation years.
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39. (1) Subsection 138(2) of the Act is
replaced by the following:
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Insurer's
income or loss
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(2) Notwithstanding any other provision of
this Act, where a life insurer resident in
Canada carries on an insurance business in
Canada and in a country other than Canada in
a taxation year
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(2) Subparagraphs 138(3)(a)(i) and (ii) of
the Act are replaced by the following:
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(3) Subsection 138(4) of the Act is
replaced by the following:
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Amounts
included in
computing
income
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(4) In computing a life insurer's income for
a taxation year from carrying on its life
insurance business in Canada, there shall be
included
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Life insurance
policy
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(4.01) For the purposes of subsections (3)
and (4), a life insurance policy includes a
benefit under a group life insurance policy or
a group annuity contract.
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(4) The portion of subsection 138(4.4) of
the Act after paragraph (d) and before
paragraph (e) is replaced by the following:
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there shall be included in computing the
insurer's income for the year, where the land,
building or interest was designated insurance
property of the insurer for the year, or property
used or held by it in the year in the course of
carrying on an insurance business in Canada,
the total of all amounts each of which is the
amount prescribed in respect of the insurer's
cost or capital cost, as the case may be, of the
land, building or interest for the period, and
the amount prescribed shall, at the end of the
period, be included in computing
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(5) The portion of subsection 138(4.5) of
the Act before paragraph (a) is replaced by
the following:
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Application
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(4.5) Where a life insurer transfers or lends
property, directly or indirectly in any manner
whatever, to a person or partnership (in this
subsection referred to as the ``transferee'')
that is affiliated with the insurer or a person or
partnership that does not deal at arm's length
with the insurer and
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(6) Paragraph 138(4.5)(d) of the Act is
replaced by the following:
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(7) Paragraph 138(5)(b) of the Act is
replaced by the following:
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(8) Subsection 138(7) of the Act is
repealed.
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(9) Subsections 138(9), (10) and (11.1) of
the Act are replaced by the following:
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Computation
of income
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(9) Where in a taxation year an insurer
(other than an insurer resident in Canada that
does not carry on a life insurance business)
carries on an insurance business in Canada
and in a country other than Canada, there shall
be included in computing its income for the
year from carrying on its insurance businesses
in Canada the total of
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Application of
financial
institution
rules
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(10) Notwithstanding sections 142.3, 142.4
and 142.5 , where in a taxation year an insurer
(other than an insurer resident in Canada that
does not carry on a life insurance business)
carries on an insurance business in Canada
and in a country other than Canada, in
computing its income for the year from
carrying on an insurance business in Canada,
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Identical
properties
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(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
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(10) Subsections 138(11.3) and (11.31) of
the Act are replaced by the following:
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Deemed
disposition
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(11.3) Subject to subsection (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
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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 immediately
thereafter reacquired the property at a cost
equal to that fair market value.
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Exclusion
from deemed
disposition
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(11.31) Subsection (11.3) does not apply
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(11) Paragraph 138(11.5)(i) of the Act is
replaced by the following:
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(12) Subsection 138(11.5) of the Act is
amended by adding the following after
paragraph (j):
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(13) Paragraph 138(11.91)(d) of the Act is
replaced by the following:
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