I-3 - Taxation Act

Section 1029.8.36.145 Disposition versions

2010-04-20

1029.8.36.145. (Repealed).

2001, c. 51, s. 189; 2010, c. 5, s. 158.

2006-03-01

1029.8.36.145. Where, before 1 January 2003, a taxpayer who is a member of a partnership pays in a fiscal period of the partnership, in this section referred to as the “fiscal period of repayment”, pursuant to a legal obligation, a particular amount that may reasonably be considered to be a repayment of government assistance or non-government assistance that reduced, because of subparagraph ii of paragraph b of section 1029.8.36.141, the taxpayer’s share, for a fiscal period of the partnership, of the amount of a particular qualified solicitation expenditure of the partnership in respect of a foreign investment fund, for the purpose of computing the amount that the taxpayer is deemed to have paid to the Minister in respect of the particular foreign investment fund for a taxation year under section 1029.8.36.132, the following rules apply:

(a)  the amount that the taxpayer is deemed to have paid to the Minister in respect of the fund under that section 1029.8.36.132 in respect of the partnership for the taxation year in which the fiscal period of repayment ended is deemed to be equal to the aggregate of

i.  the amount that, had there been no such repayment in the fiscal period of repayment, the taxpayer would have been deemed to have paid to the Minister in respect of the fund under that section in respect of the partnership for that taxation year, and

ii.  the lesser of

(1)  the amount by which the aggregate of all amounts each of which is the amount that, had there been no such repayment of government assistance or non-government assistance in the fiscal period of repayment or a preceding fiscal period, the taxpayer would have been deemed to have paid to the Minister in respect of the fund under that section 1029.8.36.132 in respect of the partnership, without taking into account the taxpayer’s share, for the fiscal period, of the amount attributed to the partnership in respect of the fund pursuant to the agreement referred to in section 1029.8.36.136, and if the taxpayer’s share of any amount for any fiscal period were the taxpayer’s share of that amount for the fiscal period of repayment, for a particular taxation year that is the year in which the fiscal period in which the particular qualified solicitation expenditure was paid ended, or that is the year in which one of the following two fiscal periods not subsequent to the fiscal period of repayment ended, exceeds the aggregate of all amounts each of which is the amount that, but for this section, and if the taxpayer’s share of any amount for any fiscal period were the taxpayer’s share of that amount for the fiscal period of repayment, the taxpayer would have been deemed to have paid to the Minister in respect of the fund under that section 1029.8.36.132 in respect of the partnership for such a particular taxation year, or an amount determined under this subparagraph ii in respect of the taxpayer in relation to the partnership and on the assumption that the taxpayer’s share of any amount for any fiscal period was the taxpayer’s share of that amount for the fiscal period of repayment, for a taxation year preceding the taxation year in which the fiscal period of repayment ended, and

(2)  the taxpayer’s share, for the fiscal period of repayment, of the amount determined in the second paragraph;

(b)  if the repayment occurs in the fiscal period following the fiscal period in which the particular qualified solicitation expenditure was paid, the particular amount is deemed, for the purpose of applying section 1029.8.36.132 to the taxation year in which the fiscal period following the fiscal period of repayment ends, to be a qualified solicitation expenditure in respect of a foreign investment fund made by the partnership in the fiscal period in which the particular qualified solicitation expenditure was paid; and

(c)  where applicable, the partnership is deemed, for the purpose of applying section 1029.8.36.132 in respect of the excess amount determined under subparagraph 1 of subparagraph ii of subparagraph a, to have carried out in the fiscal period of repayment a qualified international financial transaction in respect of a foreign investment fund and operated an international financial centre in that fiscal period.

The amount to which subparagraph 2 of subparagraph ii of subparagraph a of the first paragraph refers is equal to the amount by which $300,000 exceeds the aggregate of all amounts each of which is an amount deemed under section 1029.8.36.129 or 1029.8.36.132 to have been paid to the Minister in respect of the fund

(a)  by a taxpayer who was a member of the partnership at the end of a fiscal period preceding the fiscal period of repayment, for a taxation year in which that preceding fiscal period ended;

(b)  where the partnership is a member of an associated group in the fiscal period of repayment, by a member corporation of the group, in this section referred to as the “particular corporation”, for a taxation year ending in the fiscal period of repayment and for any taxation year preceding that year, or by a taxpayer who is a member at the end of a fiscal period of another member partnership of the group, in this section referred to as the “particular partnership”, for a taxation year in which that fiscal period ended and ending in the fiscal period of repayment and for any taxation year preceding that year; or

(c)  where the partnership was a member of an associated group in a fiscal period preceding the fiscal period of repayment, by a corporation, other than a corporation referred to in subparagraph b, that was a member corporation of the group, in this section referred to as the “particular corporation”, for a taxation year ending in that preceding fiscal period and for any taxation year preceding that year, or by a taxpayer, other than a taxpayer referred to in subparagraph b, who was a member at the end of a fiscal period of another member partnership of the group, in this section referred to as the “particular partnership”, for a taxation year in which that fiscal period ended and ending in that preceding fiscal period and for any taxation year preceding that year.

For the purposes of subparagraph c of the second paragraph, where the particular corporation or the particular partnership was a member of a particular associated group in a preceding taxation year or preceding fiscal period, of which the partnership was not a member, the partnership is deemed to be a member of the particular associated group in the preceding fiscal period.

2001, c. 51, s. 189.