Mutuelle des fonctionnaires du Québec v. Canada
T-2188-88
Tremblay-Lamer J.
28/11/96
9 pp.
Appeal from T.C.C. decision dismissing plaintiff's appeal from notice of reassessment issued for 1983 taxation year-Plaintiff group insurance company-Since January 1, 1976, plaintiff and Assurance-vie Desjardins co-insurers under master group insurance contract in respective proportions of 75%, 25%-Purpose of return credit formula to return surpluses, profits realized during insurance period to policyholders-Remainder surplus required, under Schedule 1 to master contract, clause 3.1, to be deposited in stabilization fund-For its 1983 fiscal year, plaintiff establishing refund of $820,907, to be returned to policyholder's, as expenditure-MNR disallowing deduction-Issue concerning construction of Income Tax Act, s. 140(c)-Whether refund credited to policyholder's account in 1983 or within 12 months thereafter-Expression "crediting to" or "crediting" refers to operation by which someone puts sum of money at disposal of someone else-One cannot conclude from mere fact $820,907 appears in plaintiff's liabilities and bears interest that sum in fact at disposal of policyholder in 1983-Policyholder, for its insured, had no control over sum in 1983 or during 12 months thereafter-Sum in question merely "illustration of experience"-Approximate amount for 1983 cumulative with that of subsequent years, so exact amount of refund could not be definitively known until end of insurance period-Fact sum included in liabilities as "provision for refund" not per se sufficient positive act to warrant finding sum in fact credited to policyholder's account-Appeal dismissed-Income Tax Act, S.C. 1970-7172, c. 63, s. 140(c).