I-3 - Taxation Act

Section 1175.21.1 Disposition versions

2007-11-07

1175.21.1. Every corporation that, in relation to an eligible vessel, has deducted, for a particular taxation year, an amount under paragraph b.2 or b.2.1 of section 1137 and, if the corporation is a member of a partnership, because of subsection 3 of section 1136, in computing its paid-up capital determined under Part IV for the purpose of computing the tax payable by the corporation for the particular year under that Part, shall pay the tax computed under the second paragraph, for a subsequent taxation year, in this section referred to as the “repayment year”, in which

(a)  an amount relating to the eligible acquisition costs or the eligible conversion costs of the eligible vessel, or to its share of such costs, in respect of which the corporation has deducted an amount for a taxation year preceding the repayment year is, directly or indirectly, refunded or otherwise paid to the corporation, or allocated to a payment to be made by the corporation; or

(b)  ends a fiscal period of the partnership in which an amount relating to the eligible acquisition costs or the eligible conversion costs, as the case may be, of the eligible vessel of the partnership, in respect of which the corporation has deducted, in respect of its share of those costs, an amount for a taxation year preceding the repayment year is, directly or indirectly, refunded or otherwise paid to the partnership, or allocated to a payment to be made by the partnership.

The tax to which the first paragraph refers is equal to the amount by which the amount determined in accordance with the third paragraph is exceeded by the aggregate of all amounts each of which is the amount by which the amount of the tax that would have been payable by the corporation under Part IV for a particular taxation year preceding the repayment year and in respect of which the corporation has deducted an amount relating to the eligible acquisition costs or the eligible conversion costs of the eligible vessel, or to its share of such costs, if every amount that, at or before the end of the repayment year or of the fiscal period that ended in the repayment year, as the case may be, is so refunded, paid or allocated, in relation to those costs, had been refunded, paid or allocated in that particular taxation year or in the fiscal period that ended in the particular taxation year, as the case may be, and in the case where the costs were incurred by the partnership referred to in the first paragraph, if the corporation’s share of the income or loss of the partnership for the partnership’s fiscal period that ends in that particular taxation year and the income or loss of the partnership for that fiscal period had been the same as those for the partnership’s fiscal period that ends in the repayment year, exceeds the amount of the tax payable by the corporation under Part IV for that particular taxation year or, in the case where the costs were incurred by the partnership referred to in the first paragraph, that would have been payable by the corporation under that Part if the corporation’s share of the income or loss of the partnership for the partnership’s fiscal period that ends in that particular taxation year and the partnership’s income or loss for that fiscal period had been the same as those for the partnership’s fiscal period that ends in the repayment year.

The amount to which the second paragraph refers is equal to the aggregate of all amounts each of which is a tax payable by the corporation to the Minister under this section, in respect of the eligible acquisition costs or the eligible conversion costs of the eligible vessel, for a taxation year preceding the repayment year or that would have been so payable, in the case where the costs were incurred by the partnership referred to in the first paragraph, if the corporation’s share of the income or loss of the partnership for the partnership’s fiscal period that ends in that preceding taxation year and the partnership’s income or loss for that fiscal period had been the same as those for the partnership’s fiscal period that ends in the repayment year.

1999, c. 83, s. 271; 2007, c. 12, s. 294.

2006-03-01

1175.21.1. Any corporation that, in relation to an eligible vessel, has deducted for any taxation year, under paragraph b.2 or b.2.1 of section 1137 and, where the corporation is a member of a partnership, because of subsection 3 of section 1136, an amount in computing its paid-up capital determined under Part IV for the purpose of computing the tax payable by the corporation for the year under that Part, shall pay, for a particular taxation year, a tax equal to the amount obtained by applying the appropriate rate determined in section 1132 for the purpose of computing the tax payable by the corporation for that taxation year under Part IV to the amount equal

(a)  where, in the particular year, an amount relating to the eligible acquisition costs or the eligible conversion costs, as the case may be, of the eligible vessel or to its share of such costs, in respect of which the corporation has deducted an amount for a taxation year preceding the particular year, is, directly or indirectly, refunded or otherwise paid to the corporation or allocated to a payment to be made by the corporation, to the amount so refunded, paid or allocated; or

(b)  where the corporation is a member of a partnership, where it has deducted an amount in computing its paid-up capital for a taxation year, because of subsection 3 of section 1136 and paragraph b.2 or b.2.1 of section 1137, in respect of its share of the eligible acquisition costs or the eligible conversion costs, as the case may be, of the eligible vessel of the partnership in a fiscal period of the partnership and where, in a subsequent fiscal period of the partnership ending in the particular year, an amount relating to the costs is, directly or indirectly, refunded or otherwise paid to the partnership or allocated to a payment to be made by the partnership, to the amount so refunded, paid or allocated.

For the purposes of subparagraph b of the first paragraph, the corporation’s share of an amount refunded, paid or allocated is equal to such proportion of that amount as the share of the corporation of the income or loss of the partnership for the fiscal period of the partnership ending in the particular taxation year is of the income or loss of the partnership for that fiscal period, on the assumption that, if the income and loss of the partnership for that fiscal period are nil, the partnership’s income for that fiscal period is equal to $1,000,000.

1999, c. 83, s. 271.