I-3 - Taxation Act

Section 142.2 Disposition versions

2019-06-19

142.2. (Repealed).

2003, c. 2, s. 46; 2005, c. 1, s. 58; 2019, c. 14, s. 83.

2006-03-01

142.2. A taxpayer who establishes that an amount included in computing an excess referred to in subparagraph b of the second paragraph of section 107 has become a bad debt in a taxation year in respect of one or more dispositions of incorporeal capital property by the taxpayer, is deemed to have an allowable capital loss from a disposition of capital property in the year equal to the amount by which the amount determined under the second paragraph is exceeded by the lesser of

(a)  the total of the amount determined under subparagraph a of the second paragraph of section 142.1 and 2/3 of the amount determined under subparagraph b of that second paragraph in respect of the taxpayer for the year; and

(b)  the aggregate of all amounts each of which is, in respect of the taxpayer for the year,

i.  the amount that would be determined under subparagraph c of the second paragraph of section 142.1 if each year referred to in that subparagraph ended after 17 October 2000 or is determined under subparagraph d of that second paragraph,

ii.  3/4 of the amount that would be determined under subparagraph c of the second paragraph of section 142.1 if each year referred to in that subparagraph ended after 27 February 2000 but before 18 October 2000 or is determined under subparagraph e of that second paragraph, and

iii.  2/3 of the amount that would be determined under subparagraph c of the second paragraph of section 142.1 if each year referred to in that subparagraph ended before 28 February 2000 or is determined under subparagraph f of that second paragraph.

The amount to which the first paragraph refers is equal to the aggregate of all amounts each of which is

(a)  an amount that is deemed under this section to be an allowable capital loss of the taxpayer for a preceding taxation year that ends after 17 October 2000;

(b)  3/4 of an amount that is deemed under this section to be an allowable capital loss of the taxpayer for a preceding taxation year that ends after 27 February 2000 but before 18 October 2000; and

(c)  2/3 of an amount that is deemed under section 142.1 to be an allowable capital loss of the taxpayer for a preceding taxation year that ends before 28 February 2000.

2003, c. 2, s. 46; 2005, c. 1, s. 58.