SCDA (2005) – Federal Court of Appeal finds that s. 138(11.3) does not generate a basis bump in the 1st year a Canadian insurer carries on business in another country

Webb JA affirmed the interpretation below by Pizzitelli J of s. 138(11.3): there is no deemed disposition under s. 138(11.3) in the first year a Canadian insurer carries on business in another country, so that the taxpayer (Standard Life) did not enjoy a tax-free basis bump of $1.2B.

Neal Armstrong. Summaries of SCDA (2005) Inc. v. Canada, 2017 FCA 177 under s. 138(11.3) and Tax Court Rules, s. 147(3).