I-3 - Taxation Act

Section 193.3 Disposition versions

2019-06-19

193.3. Despite any other provision of this Act, in computing a taxpayer’s income from a business for a taxation year, the total amount deductible in respect of a particular emission obligation for the year is not to exceed the amount determined by the formula

A + (B × C).

In the formula in the first paragraph,

(a)  A is the total cost of emission allowances either

i.  used by the taxpayer to settle the particular emission obligation in the year, or

ii.  held by the taxpayer at the end of the year that can be used to satisfy the particular emission obligation in respect of the year;

(b)  B is the amount determined by the formula

D − (E + F); and

(c)  C is the fair market value of an emission allowance at the end of the year that could be used to satisfy the particular emission obligation in respect of the year.

In the formula in subparagraph b of the second paragraph,

(a)  D is the number of emission allowances required to satisfy the particular emission obligation in respect of the year;

(b)  E is the number of emission allowances used by the taxpayer to settle the particular emission obligation in the year; and

(c)  F is the number of emission allowances held by the taxpayer at the end of the year that can be used to satisfy the particular emission obligation in respect of the year.

2019, c. 14, s. 90.