INCOME TAX |
Income Calculation |
Canada v. Manufacturers Life Insurance Co.
A-803-99
2001 FCA 213, Rothstein J.A.
25/6/01
5 pp.
Appeal from Tax Court of Canada decision concerning capital tax on insurance companies--Under accounting rules for life insurance companies, insurance company required to amortize into income, over specified time period, gains or losses on disposition of bonds, stock, real estate, mortgages--Issue involving treatment, for capital tax purposes, of unamortized portion of gains realized on disposition of bonds, stock, real estate, mortgages--Tax Court Judge finding they were not reserves, surpluses, allowing respondent's appeal from Minister's reassessment--Under Income Tax Act, s. 181(3)(b)(ii), for purposes of determining amount in respect of company's capital for capital tax purposes, amounts reflected in balance sheet accepted by Superintendent of Financial Institutions to be used--Unamortized portion of realized gains herein not reflected on balance sheet of respondent as reserves or surpluses--Not shown as financial resources available to respondent according to financial statements--Balance sheet must conform to legislative, regulatory requirements--In absence of such requirements, intention is that it conform to Generally Accepted Accounting Principles--Appeal dismissed--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 181 (as am. by S.C. 1994, c. 7, Sch. II, s. 145; idem, Sch. VIII, s. 104; 1994, c. 21, s. 81; 1995, c. 21, s. 72).