I-3 - Taxation Act

Section 217.3 Disposition versions

2017-02-08

217.3. If an individual, other than a succession that is a graduated rate estate, begins carrying on a business in a taxation year but not earlier than the beginning of the first fiscal period of the business that begins in the year and ends after the end of the year (in this section referred to as the “particular fiscal period”) and the individual has made an election referred to in the first paragraph of section 7.0.3 in respect of the business, where the particular fiscal period is a fiscal period referred to in the second paragraph of section 7, or has made an election under subsection 4 of section 249.1 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) in respect of the business, where the particular fiscal period is a fiscal period referred to in the third or fourth paragraph of section 7, the individual shall, if the election has not been revoked, include, in computing the individual’s income for the year from the business, the lesser of

(a)  the amount designated in the individual’s fiscal return under this Part for the year; and

(b)  the amount determined by the formula

(A - B) × (C / D).

For the purposes of the formula in subparagraph b of the first paragraph,

(a)  A is the individual’s income from the business for the particular fiscal period;

(b)  B is the lesser of

i.  the aggregate of all amounts each of which is an amount included in the amount determined under subparagraph a in respect of the business and that is deemed to be a taxable capital gain for the purposes of Title VI.5 of Book IV, and

ii.  the aggregate of all amounts deducted under the said Title VI.5 in computing the individual’s taxable income for the individual’s taxation year that includes the end of the particular fiscal period;

(c)  C is the number of days on which the individual carries on the business that are both in the year and in the particular fiscal period; and

(d)  D is the number of days on which the individual carries on the business that are in the particular fiscal period.

1997, c. 31, s. 27; 2009, c. 5, s. 75; 2017, c. 1, s. 102.

2009-05-15

217.3. If an individual, other than a testamentary trust, begins carrying on a business in a taxation year but not earlier than the beginning of the first fiscal period of the business that begins in the year and ends after the end of the year (in this section referred to as the “particular fiscal period”) and the individual has made an election referred to in the first paragraph of section 7.0.3 in respect of the business, where the particular fiscal period is a fiscal period referred to in the second paragraph of section 7, or has made an election under subsection 4 of section 249.1 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) in respect of the business, where the particular fiscal period is a fiscal period referred to in the third or fourth paragraph of section 7, the individual shall, if the election has not been revoked, include, in computing the individual’s income for the year from the business, the lesser of

(a)  the amount designated in the individual’s fiscal return under this Part for the year; and

(b)  the amount determined by the formula

(A - B) × (C / D).

For the purposes of the formula in subparagraph b of the first paragraph,

(a)  A is the individual’s income from the business for the particular fiscal period;

(b)  B is the lesser of

i.  the aggregate of all amounts each of which is an amount included in the amount determined under subparagraph a in respect of the business and that is deemed to be a taxable capital gain for the purposes of Title VI.5 of Book IV, and

ii.  the aggregate of all amounts deducted under the said Title VI.5 in computing the individual’s taxable income for the individual’s taxation year that includes the end of the particular fiscal period;

(c)  C is the number of days on which the individual carries on the business that are both in the year and in the particular fiscal period; and

(d)  D is the number of days on which the individual carries on the business that are in the particular fiscal period.

1997, c. 31, s. 27; 2009, c. 5, s. 75.

2006-03-01

217.3. Where an individual, other than a testamentary trust, begins carrying on a business in a taxation year but not earlier than the beginning of the first fiscal period of the business that begins in the year and ends after the end of the year, in this section referred to as the “particular fiscal period”, and the individual has elected under section 7.0.3 in respect of the business and the election has not been revoked, there shall be included in computing the individual’s income for the year from the business the lesser of

(a)  the amount designated in the individual’s fiscal return under this Part for the year; and

(b)  the amount determined by the formula

(A − B) × (C / D).

For the purposes of the formula in subparagraph b of the first paragraph,

(a)  A is the individual’s income from the business for the particular fiscal period;

(b)  B is the lesser of

i.  the aggregate of all amounts each of which is an amount included in the amount determined under subparagraph a in respect of the business and that is deemed to be a taxable capital gain for the purposes of Title VI.5 of Book IV, and

ii.  the aggregate of all amounts deducted under the said Title VI.5 in computing the individual’s taxable income for the individual’s taxation year that includes the end of the particular fiscal period;

(c)  C is the number of days on which the individual carries on the business that are both in the year and in the particular fiscal period; and

(d)  D is the number of days on which the individual carries on the business that are in the particular fiscal period.

1997, c. 31, s. 27.