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s. 139

PART I — Income Tax · DIVISION F — Special Rules Applicable in Certain Circumstances · Insurance Corporations

Conversion of insurance corporations into mutual corporations

Not yet annotated · Text current to 2026-06-21 · section last amended 2004-08-31

Current text

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,

(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

(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.

Source: Justice Laws Website. Not an official version.

Historic text

This section has not been amended since the start of the point-in-time record on 31 August 2004.

Earlier versions: Justice Laws point-in-time versions of the Act (from 31 August 2004), and CanLII (under “Versions”). On Justice Laws, each version of section 139 links to the one before it.

Enacting and amending legislation

  • R.S., 1985, c. 1 (5th Supp.), s. 139; 1994, c. 7, Sch. I, s. 734

Text before 2004 is found in the annual Statutes of Canada cited above. Application and coming-into-force provisions are not part of the consolidation; see the amending Acts.

Cross-references

This section refers to

References are generated from the statutory text and list other sections of the Act only.

Citation

Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 139.