Versions of s. 138(12), definition “1975 76 excess policy dividend reserve”

1975-76 excess policy dividend reserve of an insurer that has made an election under subsection 138(9) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, as it read in its application to the 1977 taxation year, in respect of its 1975 taxation year means the amount determined by the formula A - B where A is the amount that would have been deductible under subparagraph 138(3)(a)(iv) by the insurer in computing its income for its 1976 taxation year if it had not made the election under subsection 138(9) of that Act in respect of its 1975 taxation year, where it made an election under subsection 138(9) of that Act in respect of its 1974 taxation year, it had adopted for its 1975 taxation year, with the concurrence of the Minister, the method required by subsection 138(9) of that Act if it had not elected under that subsection and the Minister had specified no terms and conditions under subsection 138(10) of that Act, it had claimed the maximum allowable amount under paragraph 138(3)(c) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, in computing its income for its 1975 taxation year, it had claimed the maximum allowable amount that would have been deductible under regulations made under paragraph 20(1)(a) in computing its income for its 1975 taxation year with respect to property of each of its prescribed classes, and the amount of its income for its 1976 taxation year from its participating life insurance business carried on in Canada was computed in accordance with prescribed rules and as if the amount deducted under subparagraph 138(3)(a)(iv) by it in computing its income for its 1975 taxation year was the amount that would have been deductible under that subparagraph on the basis of the assumptions made in paragraphs (a) to (d) of this description, and B is the amount deducted by the insurer under subparagraph 138(3)(a)(iv) in computing its income for its 1976 taxation year;