I-3 - Taxation Act

Section 485.2 Disposition versions

2017-02-08

485.2. Despite the definition of “relevant loss balance” in section 485, the relevant loss balance at a particular time for a commercial obligation and in respect of a debtor’s non-capital loss, farm loss, restricted farm loss or net capital loss, as the case may be, for a taxation year is deemed to be nil where the debtor is a taxpayer that was at a previous time subject to a loss restriction event and the taxation year ended before the previous time, unless

(a)  the obligation was issued by the debtor before, and not in contemplation of, the loss restriction event; or

(b)  all or substantially all of the amount for which the obligation was issued was used to satisfy the principal amount of another obligation to which paragraph a or this paragraph would apply if the other obligation were still outstanding.

1984, c. 15, s. 104; 1986, c. 19, s. 110; 1987, c. 67, s. 116; 1996, c. 39, s. 141; 1997, c. 3, s. 71; 2017, c. 1, s. 121.

2006-03-01

485.2. Notwithstanding the definition of “relevant loss balance” in section 485, the relevant loss balance at a particular time for a commercial obligation and in respect of a debtor’s non-capital loss, farm loss, restricted farm loss or net capital loss, as the case may be, for a taxation year is deemed to be nil where the debtor is a corporation the control of which was acquired at a time before the particular time by a person or group of persons and the taxation year ended before the previous time, unless

(a)  the obligation was issued by the debtor before, and not in contemplation of, the acquisition of control, or

(b)  all or substantially all of the amount for which the obligation was issued was used to satisfy the principal amount of another obligation to which paragraph a or this paragraph would apply if the other obligation were still outstanding.

1984, c. 15, s. 104; 1986, c. 19, s. 110; 1987, c. 67, s. 116; 1996, c. 39, s. 141; 1997, c. 3, s. 71.