I-3 - Taxation Act

Section 217.22 Disposition versions

2015-10-26

217.22. For the purposes of this Act, the following rules apply:

(a)  in computing the income of a corporation for a taxation year,

i.  an adjusted stub period accrual included under section 217.19 in respect of a partnership for the year is deemed to be income, and taxable capital gains from the disposition of property, having the same character and to be in the same proportions as the income and taxable capital gains that were allocated by the partnership to the corporation for all fiscal periods of the partnership ending in the year,

ii.  an amount included under section 217.20 in respect of a partnership for the year is deemed to be income, and taxable capital gains from the disposition of property, having the same character and to be in the same proportions as the income and taxable capital gains that were allocated by the partnership to the corporation for the particular fiscal period referred to in that section,

iii.  an amount, a portion of which is deductible or is an allowable capital loss under section 217.21 in respect of a partnership for the year, is deemed to have the same character and to be in the same proportions as the income and taxable capital gains included in computing the corporation’s income for the preceding taxation year under section 217.19 or 217.20 in respect of the partnership,

iv.  an amount claimed as a reserve under section 217.27 in respect of a partnership for the year is deemed to have the same character and to be in the same proportions as the qualifying transitional income in respect of the partnership for the year, and

v.  an amount, a portion of which is included in computing income under paragraph a of section 217.28, or is deemed to be a taxable capital gain under paragraph b of section 217.28, in respect of a partnership for the year, is deemed to have the same character and to be in the same proportions as the amount claimed as a reserve under section 217.27 in respect of the partnership for the preceding taxation year; and

(b)  the reference in subparagraph i.4 of paragraph l of section 257 to an amount deducted under section 217.27 includes an amount that is deemed to be an allowable capital loss under subparagraph c of the first paragraph of section 217.27.

2013, c. 10, s. 21; 2015, c. 24, s. 45.

2013-06-05

217.22. For the purposes of this Act, the following rules apply:

(a)  in computing the income of a corporation for a taxation year,

i.  an adjusted stub period accrual included under section 217.19 in respect of a partnership for the year is deemed to be income and taxable capital gains having the same character and to be in the same proportions as any income and taxable capital gains that were allocated by the partnership to the corporation for all fiscal periods of the partnership ending in the year,

ii.  an amount included under section 217.20 in respect of a partnership for the year is deemed to be income and taxable capital gains having the same character and to be in the same proportions as any income and taxable capital gains that were allocated by the partnership to the corporation for the particular fiscal period referred to in that section,

iii.  an amount deductible under section 217.21 in respect of a partnership for the year is deemed to have the same character and to be in the same proportions as the income and taxable capital gains included in computing the corporation’s income for the preceding taxation year under section 217.19 or 217.20 in respect of the partnership,

iv.  an amount deductible as a reserve under section 217.27 in respect of a partnership for the year is deemed to have the same character and to be in the same proportions as the qualifying transitional income in respect of the partnership for the year, and

v.  an amount included in computing income under section 217.28 in respect of the partnership for the year is deemed to have the same character and to be in the same proportions as the amount deducted under section 217.27 for the preceding taxation year; and

(b)  a corporation is deemed to have realized at the end of a taxation year an allowable capital loss equal to the amount determined by the formula

A - (B - C).

In the formula in subparagraph b of the first paragraph,

(a)  A is the amount deductible for the year under section 217.21 in respect of taxable capital gains of a partnership;

(b)  B is the amount that is the aggregate of

i.  all taxable capital gains allocated by the partnership to the corporation for the year,

ii.  the amount included in computing the corporation’s income for the year under section 217.19 in respect of taxable capital gains of the partnership, and

iii.  the amount included in computing the corporation’s income for the year under section 217.28 in respect of taxable capital gains of the partnership; and

(c)  C is the amount that is the lesser of

i.  the amount that is the aggregate of all allowable capital losses allocated by the partnership to the corporation for the year, and

ii.  the amount determined under subparagraph i of subparagraph b.

2013, c. 10, s. 21.