Versions of s. 211(1), definition “net interest rate”

I-3.3 — Income Tax Act · 2 versions · View current text

Historical text comes from the Justice Laws point-in-time corpus and is unofficial — not the official version.

2012-12-14 to present available View Source

net interest rate, in respect of a liability, benefit, risk or guarantee under a life insurance policy of an insurer for a taxation year, is the positive amount, if any, determined by the formula(A - B) × C where A is the simple arithmetic average determined as of the first day of the year of the average yield (expressed as a percentage per year rounded to 2 decimal points) in each of the 60 immediately preceding months prevailing on all domestic Canadian-dollar Government of Canada bonds outstanding on the last Wednesday of that month that have a remaining term to maturity of more than 10 years, B is in the case of a guaranteed benefit provided under the terms and conditions of the policy as they existed on March 2, 1988, other than a policy where, at any time after March 2, 1988, its terms and conditions relating to premiums and benefits were changed (otherwise than to give effect to the terms and conditions that were determined before March 3, 1988), the greater of the rate of interest (expressed as a percentage per year) used by the insurer in determining the amount of the guaranteed benefit, and 4%, and in any other case, nil, and C is in the case of a guaranteed benefit to which paragraph (a) of the description of B applies, 65%, and in any other case, 55%; (taux d’intérêt net)

Full text

net interest rate, in respect of a liability, benefit, risk or guarantee under a life insurance policy of an insurer for a taxation year, is the positive amount, if any, determined by the formula(A - B) × C where A is the simple arithmetic average determined as of the first day of the year of the average yield (expressed as a percentage per year rounded to 2 decimal points) in each of the 60 immediately preceding months prevailing on all domestic Canadian-dollar Government of Canada bonds outstanding on the last Wednesday of that month that have a remaining term to maturity of more than 10 years, B is in the case of a guaranteed benefit provided under the terms and conditions of the policy as they existed on March 2, 1988, other than a policy where, at any time after March 2, 1988, its terms and conditions relating to premiums and benefits were changed (otherwise than to give effect to the terms and conditions that were determined before March 3, 1988), the greater of the rate of interest (expressed as a percentage per year) used by the insurer in determining the amount of the guaranteed benefit, and 4%, and in any other case, nil, and C is in the case of a guaranteed benefit to which paragraph (a) of the description of B applies, 65%, and in any other case, 55%; (taux d’intérêt net)
2004-08-31 to 2012-12-14 View Source

net interest rate, in respect of a liability, benefit, risk or guarantee under a life insurance policy of an insurer for a taxation year, is the positive amount, if any, determined by the formula(A - B) × C where A is the simple arithmetic average determined as of the first day of the year of the average yield (expressed as a percentage per year rounded to 2 decimal points) in each of the 60 immediately preceding months prevailing on all domestic Canadian-dollar Government of Canada bonds outstanding on the last Wednesday of that month that have a remaining term to maturity of more than 10 years, B is in the case of a guaranteed benefit provided under the terms and conditions of the policy as they existed on March 2, 1988, other than a policy where, at any time after March 2, 1988, its terms and conditions relating to premiums and benefits were changed (otherwise than to give effect to the terms and conditions that were determined before March 3, 1988), the greater of the rate of interest (expressed as a percentage per year) used by the insurer in determining the amount of the guaranteed benefit, and 4%, and in any other case, nil, and C is in the case of a guaranteed benefit to which paragraph (a) of the description of B applies, 65%, and in any other case, 55%;