I-3 - Taxation Act

Section 1170.1 Disposition versions

2021-01-01

1170.1. (Repealed).

2002, c. 9, s. 136; 2009, c. 5, s. 563; 2019, c. 14, s. 462.

2009-05-15

1170.1. Subject to sections 1170.2 to 1170.4, an insurance corporation carrying on a recognized business in a taxation year may deduct, in computing its tax payable under this Book for a 12-month period ending in that year, the amount obtained by multiplying the amount of tax that would be payable by it, but for this section, under this Book for that 12-month period, by the product determined by the formula

[(A - B)/A] × (C/D).

In the formula provided for in the first paragraph,

(a)  A is the proportion of the insurance corporation’s total payroll for the taxation year that 365 is of the number of days in the taxation year;

(b)  B is

i.  except where subparagraph ii or iii applies, the proportion of the insurance corporation’s total payroll for its taxation year, in this section referred to as the “base year”, that precedes the taxation year in which the insurance corporation began carrying on eligible activities, in respect of a major investment project relating to a recognized business, that 365 is of the number of days in the base year,

ii.  where the base year has fewer than 183 days and the insurance corporation has a taxation year, preceding the base year, that has more than 182 days, the amount that would be determined under subparagraph i if it applied to the total payroll of the insurance corporation for its last taxation year, preceding the base year, that has more than 182 days, or

iii.  where the taxation year in which the insurance corporation began carrying on eligible activities, in respect of a major investment project relating to a recognized business, is its first taxation year, an amount equal to zero;

(c)  C is the number of days in the insurance corporation’s eligibility period for the taxation year, in respect of a major investment project relating to a recognized business; and

(d)  D is the number of days in the taxation year.

However, the amount that an insurance corporation may deduct under the first paragraph for a 12-month period may not exceed the amount by which the insurance corporation’s tax payable under this Book for that 12-month period, computed before the application of this section, exceeds its tax payable under this Book for the last 12-month period referred to in section 1167 that ended before the beginning of the taxation year in which the insurance corporation began carrying on eligible activities, in respect of a major investment project relating to a recognized business.

2002, c. 9, s. 136; 2009, c. 5, s. 563.

2006-03-01

1170.1. Subject to sections 1170.2 and 1170.3, an insurance corporation carrying on a recognized business in a taxation year may deduct, in computing its tax payable under this Book for a 12-month period ending in that year, the amount obtained by multiplying the amount of tax that would be payable by it, but for this section, under this Book for that 12-month period, by the product determined by the formula

[(A − B) / A] × (C / D).

In the formula provided for in the first paragraph,

(a)  A is the proportion of the insurance corporation’s total payroll for the taxation year that 365 is of the number of days in the taxation year;

(b)  B is

i.  except where subparagraph ii or iii applies, the proportion of the insurance corporation’s total payroll for its taxation year, in this section referred to as the “base year”, that precedes the taxation year in which the insurance corporation began carrying on eligible activities, in respect of a major investment project relating to a recognized business, that 365 is of the number of days in the base year,

ii.  where the base year has fewer than 183 days and the insurance corporation has a taxation year, preceding the base year, that has more than 182 days, the amount that would be determined under subparagraph i if it applied to the total payroll of the insurance corporation for its last taxation year, preceding the base year, that has more than 182 days, or

iii.  where the taxation year in which the insurance corporation began carrying on eligible activities, in respect of a major investment project relating to a recognized business, is its first taxation year, an amount equal to zero;

(c)  C is the number of days in the insurance corporation’s eligibility period for the taxation year, in respect of a major investment project relating to a recognized business; and

(d)  D is the number of days in the taxation year.

However, the amount that an insurance corporation may deduct under the first paragraph for a 12-month period may not exceed the amount by which the insurance corporation’s tax payable under this Book for that 12-month period, computed before the application of this section, exceeds its tax payable under this Book for the last 12-month period referred to in section 1167 that ended before the beginning of the taxation year in which the insurance corporation began carrying on eligible activities, in respect of a major investment project relating to a recognized business.

2002, c. 9, s. 136.