I-3 - Taxation Act

Section 1137.0.0.2 Disposition versions

2019-06-13

1137.0.0.2. The amount referred to in paragraph b.1.2 of section 1137 for a taxation year in respect of a corporation is equal to the amount determined by the formula

A × [B − (C × B)].

In the formula provided for in the first paragraph,

(a)  A is

i.  where, in the taxation year, the corporation is not associated with any corporation other than a corporation referred to in the second paragraph of section 1135, 1,

ii.  where, in the taxation year, the corporation is associated with one or more corporations other than a corporation referred to in the second paragraph of section 1135, all the corporations that are associated with each other during the year have filed with the Minister an agreement in prescribed form whereby they attribute a deduction percentage to one or more of them for the year for the purposes of this section, and the deduction percentage or the total of deduction percentages so attributed, as the case may be, does not exceed 100%, the deduction percentage so attributed to the corporation for the year or, in the absence of such an attribution in its respect, zero, and

iii.  in any other case, zero;

(b)  B is

i.  where the taxation year is a 2003 taxation year that includes 31 December 2002, the proportion of $250,000 that the number of days in the taxation year after that date is of the number of days in the taxation year,

ii.  where the taxation year is a 2003 taxation year that does not include 31 December 2002, $250,000,

iii.  where the taxation year is a 2004 taxation year that includes 31 December 2003, the total of

(1)  the proportion of $250,000 that the number of days in the taxation year before 1 January 2004 is of the number of days in the taxation year, and

(2)  the proportion of $600,000 that the number of days in the taxation year after 31 December 2003 is of the number of days in the taxation year,

iv.  where the taxation year is a 2004 taxation year that does not include 31 December 2003, $600,000,

v.  where the taxation year is a 2005 taxation year that includes 31 December 2004, the total of

(1)  the proportion of $600,000 that the number of days in the taxation year before 1 January 2005 is of the number of days in the taxation year, and

(2)  the proportion of $1,000,000 that the number of days in the taxation year after 31 December 2004 is of the number of days in the taxation year, and

vi.  in any other case, $1,000,000; and

(c)  C is the proportion, expressed as a percentage not exceeding 100%, that the amount by which the paid-up capital attributed to the corporation for the taxation year exceeds the amount determined under subparagraph b in respect of the corporation for the taxation year is of three times that amount determined under subparagraph b.

For the purposes of subparagraph c of the second paragraph, the paid-up capital attributed to the corporation for a taxation year is equal to the aggregate of all amounts each of which is

(a)  the paid-up capital of the corporation determined without reference to section 1138.2.6 for the preceding taxation year, or, if the taxation year is the first fiscal period of the corporation, its paid-up capital determined without reference to paragraph b.1.2 of section 1137 and section 1138.2.6 on the basis of its financial statements at the beginning of that fiscal period; or

(b)  where, in the taxation year, the corporation is associated with another corporation, the paid-up capital of that other corporation determined without reference to section 1138.2.6 for its last taxation year that ended before the beginning of the taxation year of the corporation, or, if that other corporation has no such taxation year, its paid-up capital determined without reference to paragraph b.1.2 of section 1137 and section 1138.2.6 on the basis of its financial statements at the beginning of its first fiscal period.

For the purposes of subparagraph b of the third paragraph, where the other corporation referred to in that subparagraph is an insurer, within the meaning of the Insurers Act (chapter A-32.1), other than a corporation referred to in paragraph a of section 1132, its paid-up capital shall be established in accordance with Title II as if it were a bank and paragraph a of section 1140 were replaced by paragraph a of subsection 1 of section 1136.

2003, c. 9, s. 422; 2005, c. 23, s. 255; 2009, c. 15, s. 436; 2010, c. 25, s. 221; 2018, c. 23, s. 811.

2010-10-27

1137.0.0.2. The amount referred to in paragraph b.1.2 of section 1137 for a taxation year in respect of a corporation is equal to the amount determined by the formula

A × [B − (C × B)].

In the formula provided for in the first paragraph,

(a)  A is

i.  where, in the taxation year, the corporation is not associated with any corporation other than a corporation referred to in the second paragraph of section 1135, 1,

ii.  where, in the taxation year, the corporation is associated with one or more corporations other than a corporation referred to in the second paragraph of section 1135, all the corporations that are associated with each other during the year have filed with the Minister an agreement in prescribed form whereby they attribute a deduction percentage to one or more of them for the year for the purposes of this section, and the deduction percentage or the total of deduction percentages so attributed, as the case may be, does not exceed 100%, the deduction percentage so attributed to the corporation for the year or, in the absence of such an attribution in its respect, zero, and

iii.  in any other case, zero;

(b)  B is

i.  where the taxation year is a 2003 taxation year that includes 31 December 2002, the proportion of $250,000 that the number of days in the taxation year after that date is of the number of days in the taxation year,

ii.  where the taxation year is a 2003 taxation year that does not include 31 December 2002, $250,000,

iii.  where the taxation year is a 2004 taxation year that includes 31 December 2003, the total of

(1)  the proportion of $250,000 that the number of days in the taxation year before 1 January 2004 is of the number of days in the taxation year, and

(2)  the proportion of $600,000 that the number of days in the taxation year after 31 December 2003 is of the number of days in the taxation year,

iv.  where the taxation year is a 2004 taxation year that does not include 31 December 2003, $600,000,

v.  where the taxation year is a 2005 taxation year that includes 31 December 2004, the total of

(1)  the proportion of $600,000 that the number of days in the taxation year before 1 January 2005 is of the number of days in the taxation year, and

(2)  the proportion of $1,000,000 that the number of days in the taxation year after 31 December 2004 is of the number of days in the taxation year, and

vi.  in any other case, $1,000,000; and

(c)  C is the proportion, expressed as a percentage not exceeding 100%, that the amount by which the paid-up capital attributed to the corporation for the taxation year exceeds the amount determined under subparagraph b in respect of the corporation for the taxation year is of three times that amount determined under subparagraph b.

For the purposes of subparagraph c of the second paragraph, the paid-up capital attributed to the corporation for a taxation year is equal to the aggregate of all amounts each of which is

(a)  the paid-up capital of the corporation determined without reference to section 1138.2.6 for the preceding taxation year, or, if the taxation year is the first fiscal period of the corporation, its paid-up capital determined without reference to paragraph b.1.2 of section 1137 and section 1138.2.6 on the basis of its financial statements at the beginning of that fiscal period; or

(b)  where, in the taxation year, the corporation is associated with another corporation, the paid-up capital of that other corporation determined without reference to section 1138.2.6 for its last taxation year that ended before the beginning of the taxation year of the corporation, or, if that other corporation has no such taxation year, its paid-up capital determined without reference to paragraph b.1.2 of section 1137 and section 1138.2.6 on the basis of its financial statements at the beginning of its first fiscal period.

For the purposes of subparagraph b of the third paragraph, where the other corporation referred to in that subparagraph is an insurer, within the meaning of the Act respecting insurance (chapter A-32), other than a corporation referred to in paragraph a of section 1132, its paid-up capital shall be established in accordance with Title II as if it were a bank and paragraph a of section 1140 were replaced by paragraph a of subsection 1 of section 1136.

2003, c. 9, s. 422; 2005, c. 23, s. 255; 2009, c. 15, s. 436; 2010, c. 25, s. 221.

2009-06-04

1137.0.0.2. The amount referred to in paragraph b.1.2 of section 1137 for a taxation year in respect of a corporation is equal to the amount determined by the formula

A × [B − (C × B)].

In the formula provided for in the first paragraph,

(a)  A is

i.  where, in the taxation year, the corporation is not associated with any corporation other than a corporation referred to in the second paragraph of section 1135, 1,

ii.  where, in the taxation year, the corporation is associated with one or more corporations other than a corporation referred to in the second paragraph of section 1135, all the corporations that are associated with each other during the year have filed with the Minister an agreement in prescribed form whereby they attribute a deduction percentage to one or more of them for the year for the purposes of this section, and the deduction percentage or the total of deduction percentages so attributed, as the case may be, does not exceed 100%, the deduction percentage so attributed to the corporation for the year or, in the absence of such an attribution in its respect, zero, and

iii.  in any other case, zero;

(b)  B is

i.  where the taxation year is a 2003 taxation year that includes 31 December 2002, the proportion of $250,000 that the number of days in the taxation year after that date is of the number of days in the taxation year,

ii.  where the taxation year is a 2003 taxation year that does not include 31 December 2002, $250,000,

iii.  where the taxation year is a 2004 taxation year that includes 31 December 2003, the total of

(1)  the proportion of $250,000 that the number of days in the taxation year before 1 January 2004 is of the number of days in the taxation year, and

(2)  the proportion of $600,000 that the number of days in the taxation year after 31 December 2003 is of the number of days in the taxation year,

iv.  where the taxation year is a 2004 taxation year that does not include 31 December 2003, $600,000,

v.  where the taxation year is a 2005 taxation year that includes 31 December 2004, the total of

(1)  the proportion of $600,000 that the number of days in the taxation year before 1 January 2005 is of the number of days in the taxation year, and

(2)  the proportion of $1,000,000 that the number of days in the taxation year after 31 December 2004 is of the number of days in the taxation year, and

vi.  in any other case, $1,000,000; and

(c)  C is the proportion, expressed as a percentage not exceeding 100%, that the amount by which the paid-up capital attributed to the corporation for the taxation year exceeds the amount determined under subparagraph b in respect of the corporation for the taxation year is of three times that amount determined under subparagraph b.

For the purposes of subparagraph c of the second paragraph, the paid-up capital attributed to the corporation for a taxation year is equal to the aggregate of all amounts each of which is

(a)  the paid-up capital of the corporation for the preceding taxation year, or, if the taxation year is the first fiscal period of the corporation, its paid-up capital determined without reference to paragraph b.1.2 of section 1137 and section 1138.2.6 on the basis of its financial statements at the beginning of that fiscal period; or

(b)  where, in the taxation year, the corporation is associated with another corporation, the paid-up capital of that other corporation for its last taxation year that ended before the beginning of the taxation year of the corporation, or, if that other corporation has no such taxation year, its paid-up capital determined without reference to paragraph b.1.2 of section 1137 and section 1138.2.6 on the basis of its financial statements at the beginning of its first fiscal period.

For the purposes of subparagraph b of the third paragraph, where the other corporation referred to in that subparagraph is an insurer, within the meaning of the Act respecting insurance (chapter A-32), other than a corporation referred to in paragraph a of section 1132, its paid-up capital shall be established in accordance with Title II as if it were a bank and paragraph a of section 1140 were replaced by paragraph a of subsection 1 of section 1136.

2003, c. 9, s. 422; 2005, c. 23, s. 255; 2009, c. 15, s. 436.

2006-03-01

1137.0.0.2. The amount referred to in paragraph b.1.2 of section 1137 for a taxation year in respect of a corporation is equal to the amount determined by the formula

A × [B − (C × B)].

In the formula provided for in the first paragraph,

(a)  A is

i.  where, in the taxation year, the corporation is not associated with any corporation other than a corporation referred to in the second paragraph of section 1135, 1,

ii.  where, in the taxation year, the corporation is associated with one or more corporations other than a corporation referred to in the second paragraph of section 1135, all the corporations that are associated with each other during the year have filed with the Minister an agreement in prescribed form whereby they attribute a deduction percentage to one or more of them for the year for the purposes of this section, and the deduction percentage or the total of deduction percentages so attributed, as the case may be, does not exceed 100%, the deduction percentage so attributed to the corporation for the year or, in the absence of such an attribution in its respect, zero, and

iii.  in any other case, zero;

(b)  B is

i.  where the taxation year is a 2003 taxation year that includes 31 December 2002, the proportion of $250,000 that the number of days in the taxation year after that date is of the number of days in the taxation year,

ii.  where the taxation year is a 2003 taxation year that does not include 31 December 2002, $250,000,

iii.  where the taxation year is a 2004 taxation year that includes 31 December 2003, the total of

(1)  the proportion of $250,000 that the number of days in the taxation year before 1 January 2004 is of the number of days in the taxation year, and

(2)  the proportion of $600,000 that the number of days in the taxation year after 31 December 2003 is of the number of days in the taxation year,

iv.  where the taxation year is a 2004 taxation year that does not include 31 December 2003, $600,000,

v.  where the taxation year is a 2005 taxation year that includes 31 December 2004, the total of

(1)  the proportion of $600,000 that the number of days in the taxation year before 1 January 2005 is of the number of days in the taxation year, and

(2)  the proportion of $1,000,000 that the number of days in the taxation year after 31 December 2004 is of the number of days in the taxation year, and

vi.  in any other case, $1,000,000; and

(c)  C is the proportion, expressed as a percentage not exceeding 100%, that the amount by which the paid-up capital attributed to the corporation for the taxation year exceeds the amount determined under subparagraph b in respect of the corporation for the taxation year is of three times that amount determined under subparagraph b.

For the purposes of subparagraph c of the second paragraph, the paid-up capital attributed to the corporation for a taxation year is equal to the aggregate of all amounts each of which is

(a)  the paid-up capital of the corporation for the preceding taxation year, or, if the taxation year is the first fiscal period of the corporation, its paid-up capital determined without reference to paragraph b.1.2 of section 1137 on the basis of its financial statements at the beginning of that fiscal period; or

(b)  where, in the taxation year, the corporation is associated with another corporation, the paid-up capital of that other corporation for its last taxation year that ended before the beginning of the taxation year of the corporation, or, if that other corporation has no such taxation year, its paid-up capital determined without reference to paragraph b.1.2 of section 1137 on the basis of its financial statements at the beginning of its first fiscal period.

For the purposes of subparagraph b of the third paragraph, where the other corporation referred to in that subparagraph is an insurer, within the meaning of the Act respecting insurance (chapter A-32), other than a corporation referred to in paragraph a of section 1132, its paid-up capital shall be established in accordance with Title II as if it were a bank and paragraph a of section 1140 were replaced by paragraph a of subsection 1 of section 1136.

2003, c. 9, s. 422; 2005, c. 23, s. 255.