I-3 - Taxation Act

Section 737.18 Disposition versions

2021-06-02

737.18. For the purpose of computing the taxable income of the individual referred to in section 737.16 for a taxation year, the following rules apply:

(a)  for the purpose of computing the deduction under section 725.2, the amount that is the benefit the individual is deemed to receive in the year under any of sections 49 and 50 to 52.1, either in respect of a security or of the transfer or any other disposition of the rights under the agreement referred to in section 48, or as a consequence of the individual’s death and of the individual’s having, immediately before death, owned a right to acquire a security under such an agreement, and that the individual has included in computing income for the year, shall not include the portion of such an amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s reference period, established under section 69 of the Act respecting international financial centres (chapter C-8.3), in relation to an employment that is included in the year;

(b)  for the purpose of computing the deduction under section 725.3, the amount that is the benefit the individual is deemed to receive in the year under section 49, as a consequence of the application of section 49.2, in respect of a share acquired by the individual after 22 May 1985 and that the individual has included in computing income for the year, shall not include the portion of such an amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s reference period, established under section 69 of the Act respecting international financial centres, in relation to an employment that is included in the year;

(c)  for the purpose of computing the deduction under section 725.4, the individual shall subtract from the amount included by the individual under paragraph b of section 218 in computing income for the year in respect of a share the individual has received after 22 May 1985, the product obtained by multiplying the portion of such an amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of any of the individual’s specified periods, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(d)  for the purpose of computing the deduction under section 725.5, the individual shall subtract from the amount included by the individual under section 888.1 in computing income for the year, the product obtained by multiplying the portion of such an amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of any of the individual’s specified periods, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(e)  for the purpose of computing the deduction under section 725, the individual shall subtract from the amount included by the individual in computing income for the year, and that is an amount described in any of the paragraphs of that section, the product obtained by multiplying the portion of such an amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of any of the individual’s specified periods, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(f)  for the purpose of computing the deduction under section 725.1.2, the individual shall subtract from the amount included by the individual in computing income for the year, and that is an amount described in the second paragraph of that section, the product obtained by multiplying the portion of such an amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of any of the individual’s specified periods, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(g)  (paragraph repealed);

(h)  any capital gain realized during any of the individual’s specified periods, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment, or any capital loss, including any allowable business investment loss, for such a period is, for the purposes of Titles VI.5 and VI.5.1, deemed to be equal to the product obtained by multiplying the capital gain or capital loss by the amount by which 100% exceeds the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period.

1987, c. 67, s. 150; 1991, c. 25, s. 87; 1992, c. 1, s. 51; 1993, c. 19, s. 48; 1997, c. 85, s. 114; 1999, c. 86, s. 82; 2001, c. 53, s. 103; 2004, c. 21, s. 136; 2005, c. 38, s. 96; 2019, c. 14, s. 195; 2021, c. 14, s. 69.

2019-06-19

737.18. For the purpose of computing the taxable income of the individual referred to in section 737.16 for a taxation year, the following rules apply:

(a)  for the purpose of computing the deduction under section 725.2, the amount that is the benefit the individual is deemed to receive in the year under any of sections 49 and 50 to 52.1, in respect of a security, or the transfer or any other disposition of the rights under the agreement referred to in section 48 and that the individual has included in computing income for the year, shall not include the portion of such an amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s reference period, established under section 69 of the Act respecting international financial centres (chapter C-8.3), in relation to an employment that is included in the year;

(b)  for the purpose of computing the deduction under section 725.3, the amount that is the benefit the individual is deemed to receive in the year under section 49, as a consequence of the application of section 49.2, in respect of a share acquired by the individual after 22 May 1985 and that the individual has included in computing income for the year, shall not include the portion of such an amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s reference period, established under section 69 of the Act respecting international financial centres, in relation to an employment that is included in the year;

(c)  for the purpose of computing the deduction under section 725.4, the individual shall subtract from the amount included by the individual under paragraph b of section 218 in computing income for the year in respect of a share the individual has received after 22 May 1985, the product obtained by multiplying the portion of such an amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of any of the individual’s specified periods, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(d)  for the purpose of computing the deduction under section 725.5, the individual shall subtract from the amount included by the individual under section 888.1 in computing income for the year, the product obtained by multiplying the portion of such an amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of any of the individual’s specified periods, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(e)  for the purpose of computing the deduction under section 725, the individual shall subtract from the amount included by the individual in computing income for the year, and that is an amount described in any of the paragraphs of that section, the product obtained by multiplying the portion of such an amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of any of the individual’s specified periods, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(f)  for the purpose of computing the deduction under section 725.1.2, the individual shall subtract from the amount included by the individual in computing income for the year, and that is an amount described in the second paragraph of that section, the product obtained by multiplying the portion of such an amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of any of the individual’s specified periods, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(g)  (paragraph repealed);

(h)  any capital gain realized during any of the individual’s specified periods, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment, or any capital loss, including any allowable business investment loss, for such a period is, for the purposes of Titles VI.5 and VI.5.1, deemed to be equal to the product obtained by multiplying the capital gain or capital loss by the amount by which 100% exceeds the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period.

1987, c. 67, s. 150; 1991, c. 25, s. 87; 1992, c. 1, s. 51; 1993, c. 19, s. 48; 1997, c. 85, s. 114; 1999, c. 86, s. 82; 2001, c. 53, s. 103; 2004, c. 21, s. 136; 2005, c. 38, s. 96; 2019, c. 14, s. 195.

2006-03-01

737.18. For the purpose of computing the taxable income of the individual referred to in section 737.16 for a taxation year, the following rules apply:

(a)  for the purpose of computing the deduction under section 725.2, the amount that is the benefit the individual is deemed to receive in the year under any of sections 49 and 50 to 52.1, in respect of a security, or the transfer or any other disposition of the rights under the agreement referred to in section 48 and that the individual has included in computing income for the year, shall not include the portion of such an amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s reference period, established under section 69 of the Act respecting international financial centres (chapter C-8.3), in relation to an employment that is included in the year;

(b)  for the purpose of computing the deduction under section 725.3, the amount that is the benefit the individual is deemed to receive in the year under section 49, as a consequence of the application of section 49.2, in respect of a share acquired by the individual after 22 May 1985 and that the individual has included in computing income for the year, shall not include the portion of such an amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s reference period, established under section 69 of the Act respecting international financial centres, in relation to an employment that is included in the year;

(c)  for the purpose of computing the deduction under section 725.4, the individual shall subtract from the amount included by the individual under paragraph b of section 218 in computing income for the year in respect of a share the individual has received after 22 May 1985, the product obtained by multiplying the portion of such an amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of any of the individual’s specified periods, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(d)  for the purpose of computing the deduction under section 725.5, the individual shall subtract from the amount included by the individual under section 888.1 in computing income for the year, the product obtained by multiplying the portion of such an amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of any of the individual’s specified periods, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(e)  for the purpose of computing the deduction under section 725, the individual shall subtract from the amount included by the individual in computing income for the year, and that is an amount described in any of the paragraphs of that section, the product obtained by multiplying the portion of such an amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of any of the individual’s specified periods, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(f)  for the purpose of computing the deduction under section 725.1.2, the individual shall subtract from the amount included by the individual in computing income for the year, and that is an amount described in the second paragraph of that section, the product obtained by multiplying the portion of such an amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of any of the individual’s specified periods, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(g)  where the individual has included in computing income for the year an amount under sections 487.1 to 487.6 in respect of a benefit received by the individual as a home relocation loan, the individual shall, for the purpose of computing the deduction under section 725.6,

i.  subtract from the amount determined under paragraph a of section 725.6, the product obtained by multiplying the portion of that amount that may reasonably be attributed to the part of the year that is included in any of the individual’s specified periods, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment, by the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period,

ii.  subtract from the amount determined under paragraph b of section 725.6, the product obtained by multiplying the amount of interest, computed in accordance with that paragraph, for the part of the year that is included in any of the individual’s specified periods, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment, by the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period, and

iii.  subtract from the amount determined under paragraph c of section 725.6, the product obtained by multiplying the portion of that amount that may reasonably be considered to have been received in the part of the year that is included in any of the individual’s specified periods, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment, by the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period; and

(h)  any capital gain realized during any of the individual’s specified periods, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment, or any capital loss, including any allowable business investment loss, for such a period is, for the purposes of Titles VI.5 and VI.5.1, deemed to be equal to the product obtained by multiplying the capital gain or capital loss by the amount by which 100% exceeds the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period.

1987, c. 67, s. 150; 1991, c. 25, s. 87; 1992, c. 1, s. 51; 1993, c. 19, s. 48; 1997, c. 85, s. 114; 1999, c. 86, s. 82; 2001, c. 53, s. 103; 2004, c. 21, s. 136; 2005, c. 38, s. 96.