I-3 - Taxation Act

Section 711 Disposition versions

2009-05-15

711. The deduction allowed by paragraph a of section 710 shall not exceed the lesser of the corporation’s income for the year and the amount determined by the formula

0.75 × A + 0.25 × (B + C + D).

In the formula provided for in the first paragraph,

(a)  A is the corporation’s income for the year computed before any deduction under section 800;

(b)  B is the aggregate of all amounts each of which is equal to that proportion of the corporation’s taxable capital gain for the year in respect of a gift made by the corporation in the year and in respect of which gift an eligible amount is described in paragraph a of section 710 for the year, that the eligible amount of the gift is of the corporation’s proceeds of disposition in respect of the gift;

(c)  C is the aggregate of all amounts each of which is a taxable capital gain of the corporation for the year, by reason of the application of section 234.0.1, from a disposition of a property in a preceding taxation year; and

(d)  D is the aggregate of all amounts each of which is determined in respect of the corporation’s depreciable property of a prescribed class and equal to the lesser of

i.  the amount included under section 94 in respect of the class in computing the corporation’s income for the year, and

ii.  the aggregate of the amounts determined in respect of a disposition that is the making of a gift of a property of the class by the corporation in the year and in respect of which gift an eligible amount is described in paragraph a of section 710 for the year, each of which is equal to the lesser of

(1)  that proportion of the amount by which the proceeds of disposition of the property exceed any outlays made or expenses incurred by the corporation for the purpose of making the disposition, that the eligible amount of the gift is of the corporation’s proceeds of disposition in respect of the gift, and

(2)  that proportion of the capital cost to the corporation of the property that the eligible amount of the gift is of the corporation’s proceeds of disposition in respect of the gift.

1972, c. 23, s. 533; 1975, c. 22, s. 200; 1982, c. 5, s. 142; 1986, c. 19, s. 141; 1993, c. 16, s. 253; 1993, c. 19, s. 26; 1993, c. 64, s. 44; 1995, c. 1, s. 51; 1997, c. 3, s. 71; 1999, c. 83, s. 66; 2005, c. 23, s. 58; 2009, c. 5, s. 237.

2006-03-01

711. The deduction allowed by paragraph a of section 710 shall not exceed the lesser of the corporation’s income for the year and the amount determined by the formula

0.75 × A + 0.25 × (B + C + D).

In the formula provided for in the first paragraph,

(a)  A is the corporation’s income for the year computed before any deduction under section 800;

(b)  B is the aggregate of all amounts each of which is a taxable capital gain of the corporation for the year from a disposition that is the making of a gift made by the corporation in the year and described in paragraph a of section 710;

(c)  C is the aggregate of all amounts each of which is a taxable capital gain of the corporation for the year, by reason of the application of section 234.0.1, from a disposition of a property in a preceding taxation year; and

(d)  D is the aggregate of all amounts each of which is determined in respect of the corporation’s depreciable property of a prescribed class and equal to the lesser of

i.  the amount included under section 94 in respect of the class in computing the corporation’s income for the year, and

ii.  the aggregate of all amounts each of which is determined in respect of a disposition that is the making of a gift of a property of the class made by the corporation in the year and described in paragraph a of section 710, and equal to the lesser of the proceeds of disposition of the property minus any outlays and expenses made or incurred by the corporation for the purpose of making the disposition, and the capital cost to the corporation of the property.

1972, c. 23, s. 533; 1975, c. 22, s. 200; 1982, c. 5, s. 142; 1986, c. 19, s. 141; 1993, c. 16, s. 253; 1993, c. 19, s. 26; 1993, c. 64, s. 44; 1995, c. 1, s. 51; 1997, c. 3, s. 71; 1999, c. 83, s. 66; 2005, c. 23, s. 58.