PART VI — Tax on Capital of Financial Institutions · Calculation of Capital Tax

Taxable capital employed in Canada

Not yet annotated · Text current to 2026-06-21 · section last amended 2009-03-12

Current text

For the purposes of this Part, the taxable capital employed in Canada of a financial institution for a taxation year is,

(a)

in the case of a financial institution other than a life insurance corporation, that proportion of its taxable capital for the year that its Canadian assets at the end of the year is of its total assets at the end of the year;

(b)

in the case of a life insurance corporation that was resident in Canada at any time in the year, the total of

(i)

that proportion of the amount, if any, by which the total of

(A)

its taxable capital for the year, and

(B)

the amount prescribed for the year in respect of the corporation

exceeds

(C)

the amount prescribed for the year in respect of the corporation

that its Canadian reserve liabilities as at the end of the year is of the total of

(D)

its total reserve liabilities as at the end of the year, and

(E)

the amount prescribed for the year in respect of the corporation; and

(ii)

[Repealed, 2009, c. 2, s. 63]

(c)

in the case of a life insurance corporation that was non-resident throughout the year, its taxable capital for the year.

Source: Justice Laws Website. Not an official version.

Historic text

Immediately preceding version, in force from 2004-08-31 to 2009-03-11:

Show the text in force 2004-08-31 to 2009-03-11

Taxable capital employed in Canada

190.11 For the purposes of this Part, the taxable capital employed in Canada of a financial institution for a taxation year is,

(a) in the case of a financial institution other than a life insurance corporation, that proportion of its taxable capital for the year that its Canadian assets at the end of the year is of its total assets at the end of the year;
(b) in the case of a life insurance corporation that was resident in Canada at any time in the year, the total of
- (i) that proportion of the amount, if any, by which the total of
  - (A) its taxable capital for the year, and
  - (B) the amount prescribed for the year in respect of the corporation
  exceeds
  - (C) the amount prescribed for the year in respect of the corporation
  that its Canadian reserve liabilities as at the end of the year is of the total of
  - (D) its total reserve liabilities as at the end of the year, and
  - (E) the amount prescribed for the year in respect of the corporation, and
- (ii) the amount, if any, by which
  - (A) the amount of its reserves for the year (other than its reserves in respect of amounts payable out of segregated funds) that can reasonably be regarded as having been established in respect of its insurance businesses carried on in Canada
  exceeds the total of
  - (B) all amounts each of which is the amount of a reserve (other than a reserve described in subparagraph 138(3)(a)(i)), to the extent that it is included in the amount determined under clause 190.11(b)(ii)(A) and is deducted in computing its income under Part I for the year,
  - (C) all amounts each of which is the amount of a reserve described in subparagraph 138(3)(a)(i), to the extent that it is included in the amount determined under clause 190.11(b)(ii)(A) and is deductible under subparagraph 138(3)(a)(i) in computing its income under Part I for the year, and
  - (D) all amounts each of which is the amount outstanding (including any interest accrued thereon) at the end of the year in respect of a policy loan (within the meaning assigned by subsection 138(12)) made by the corporation, to the extent that it is deducted in computing the total determined under clause 190.11(b)(ii)(C); and
(c) in the case of a life insurance corporation that was non-resident throughout the year, its taxable capital for the year.

[NOTE: Application provisions are not included in the consolidated text
see relevant amending Acts and regulations.]
R.S., 1985, c. 1 (5th Supp.), s. 190.11
1994, c. 7, Sch. II, s. 158, c. 21, s. 88

This version on Justice Laws

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 190.11 links to the one before it.

Enacting and amending legislation

R.S., 1985, c. 1 (5th Supp.), s. 190.11; 1994, c. 7, Sch. II, s. 158, c. 21, s. 88; 2009, c. 2, s. 63

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

No other section of the Act refers to this section, and it refers to no other section.

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. 190.11.