I-3 - Taxation Act

Section 736.0.2 Disposition versions

2019-06-19

736.0.2. Subject to section 736.0.5, where, at any time, a taxpayer (other than a taxpayer who, at that time, became or ceased to be exempt from tax under this Part on the taxpayer’s taxable income) is subject to a loss restriction event and the undepreciated capital cost to the taxpayer of depreciable property of a prescribed class immediately before that time would have exceeded, if this Part were read without reference to section 93.4, the aggregate of the fair market value of all the property of that class immediately before that time and the amount in respect of property of that class otherwise allowed under regulations made under paragraph a of section 130 or deductible under the second paragraph of section 130.1 in computing the taxpayer’s income for the taxation year ending immediately before that time, the excess is to be deducted in computing the taxpayer’s income for the taxation year ending immediately before that time and is deemed to have been allowed to the taxpayer in respect of the property of that class under regulations made under paragraph a of section 130.

1984, c. 15, s. 167; 1985, c. 25, s. 121; 1989, c. 77, s. 80; 1990, c. 59, s. 280; 1997, c. 3, s. 71; 2005, c. 1, s. 142; 2017, c. 1, s. 178; 2019, c. 14, s. 194.

2017-02-08

736.0.2. Subject to section 736.0.5, where, at any time, a taxpayer (other than a taxpayer who at that time became or ceased to be exempt from tax under this Part on the taxpayer’s taxable income) is subject to a loss restriction event, the following rules apply:

(a)  where the undepreciated capital cost to the taxpayer of depreciable property of a prescribed class immediately before that time would have exceeded, if this Part were read without reference to section 93.4, the aggregate of the fair market value of all the property of that class immediately before that time and the amount in respect of property of that class otherwise allowed under regulations made under paragraph a of section 130 or deductible under the second paragraph of section 130.1 in computing the taxpayer’s income for the taxation year ending immediately before that time, the excess is to be deducted in computing the taxpayer’s income for the taxation year ending immediately before that time and is deemed to have been deductible by the taxpayer in respect of the property of that class under regulations made under paragraph a of section 130; and

(b)  where, immediately before that time, the eligible incorporeal capital amount of the taxpayer in respect of a business exceeded the aggregate of 75% of the fair market value of the aggregate of the incorporeal capital property in respect of the business and the amount otherwise deducted under paragraph b of section 130 in computing the taxpayer’s income from the business for the taxation year ending immediately before that time, the excess is to be deducted under paragraph b of section 130 in computing the taxpayer’s income from the business for the taxation year ending immediately before that time.

1984, c. 15, s. 167; 1985, c. 25, s. 121; 1989, c. 77, s. 80; 1990, c. 59, s. 280; 1997, c. 3, s. 71; 2005, c. 1, s. 142; 2017, c. 1, s. 178.

2006-03-01

736.0.2. Where, at any time, control of a corporation, other than a corporation that at that time became or ceased to be exempt from tax under this Part on its taxable income, has been acquired by a person or group of persons, the following rules apply:

(a)  where the undepreciated capital cost to the corporation of depreciable property of a prescribed class immediately before that time would have exceeded, if this Part were read without reference to section 93.4, the aggregate of the fair market value of all the property of that class immediately before that time and the amount in respect of property of that class otherwise allowed under regulations made under paragraph a of section 130 or deductible under the second paragraph of section 130.1 in computing the corporation’s income for the taxation year ending immediately before that time, the excess shall be deducted in computing the corporation’s income for the taxation year ending immediately before that time and is deemed to have been deductible by the corporation in respect of the property of that class under regulations made under paragraph a of section 130;

(b)  where, immediately before that time, the eligible incorporeal capital amount of the corporation in respect of a business exceeded the aggregate of 75% of the fair market value of the aggregate of the incorporeal capital property in respect of the business and the amount otherwise deducted under paragraph b of section 130 in computing the corporation’s income from the business for the taxation year ending immediately before that time, the excess shall be deducted under paragraph b of section 130 in computing the corporation’s income from the business for the taxation year ending immediately before that time.

1984, c. 15, s. 167; 1985, c. 25, s. 121; 1989, c. 77, s. 80; 1990, c. 59, s. 280; 1997, c. 3, s. 71; 2005, c. 1, s. 142.