I-3 - Taxation Act

Section 119.4 Disposition versions

2006-03-01

119.4. Notwithstanding any other provision of this Part, where a corporation has issued an obligation that is at any time a development bond, the following rules apply:

(a)  no deduction may be made in computing its income for a taxation year in respect of an amount paid or payable as interest on that bond, depending on the method regularly followed by the corporation in computing its income for a period that includes that time;

(b)  any amount paid by the corporation as interest on the bond, to the extent that it is not allowed as a deduction by virtue of paragraph a is, when paid, deemed to have been paid as a taxable dividend.

1982, c. 5, s. 36; 1987, c. 67, s. 29; 1997, c. 3, s. 71.