I-3 - Taxation Act

Section 359.17 Disposition versions

2006-03-01

359.17. For the purposes of paragraph c of section 359.8, a partnership and a corporation are deemed, at all times in a calendar year,

(a)  not to deal with each other at arm’s length, if

i.  an expense is deemed under section 359.3 to be incurred by the partnership,

ii.  the expense would, but for paragraph b of section 359.3, be incurred in the calendar year by the corporation, and

iii.  a share of the expense is included because of paragraph d of section 395 in the Canadian exploration expense of the corporation or of a member of the partnership with whom the corporation does not deal at arm’s length at any time in the calendar year; and

(b)  to deal with each other at arm’s length, in any other case.

1988, c. 18, s. 27; 1993, c. 16, s. 152; 1997, c. 3, s. 71; 1998, c. 16, s. 139; 2005, c. 1, s. 93.