I-3 - Taxation Act

Section 737.18.17 Disposition versions

2021-01-01

737.18.17. (Repealed).

2002, c. 9, s. 13; 2019, c. 14, s. 196.

2006-03-01

737.18.17. A corporation that, in a taxation year, carries on a recognized business in connection with which a major investment project was carried out or is in the process of being carried out, or is a member of a partnership that carries on such a recognized business in a fiscal period of the partnership ending in that year, may deduct in computing its taxable income for the year, if an annual qualification certificate has been issued, for the purposes of this Title, by the Minister of Finance in relation to the major investment project, an amount not exceeding the part of its income for the year that may reasonably be considered to be equal to the aggregate of

(a)  the amount determined by the formula

(A − B) − C; and

(b)  the corporation’s share of the amount determined by the formula

(D − E) − F.

In the formulas provided for in the first paragraph,

(a)  A is the aggregate of all amounts each of which is the amount obtained by multiplying the corporation’s income for the taxation year from its eligible activities, in relation to a major investment project, by the proportion that the number of days in the eligibility period of the corporation for the year, in relation to the major investment project, is of the number of days in the taxation year;

(b)  B is the aggregate of all amounts each of which is the amount obtained by multiplying the corporation’s loss for the taxation year from its eligible activities, in relation to a major investment project, by the proportion that the number of days in the eligibility period of the corporation for the year, in relation to the major investment project, is of the number of days in the taxation year;

(c)  C is the prior loss attributable to eligible activities of the corporation for the year;

(d)  D is the aggregate of all amounts each of which is the amount obtained by multiplying the partnership’s income for the fiscal period from its eligible activities, in relation to a major investment project, by the proportion that the number of days in the eligibility period of the partnership for the fiscal period, in relation to the major investment project, is of the number of days in the fiscal period;

(e)  E is the aggregate of all amounts each of which is the amount obtained by multiplying the partnership’s loss for the fiscal period from its eligible activities, in relation to a major investment project, by the proportion that the number of days in the eligibility period of the partnership for the fiscal period, in relation to the major investment project, is of the number of days in the fiscal period; and

(f)  F is the prior loss attributable to eligible activities of the partnership for the fiscal period.

A corporation may deduct an amount under the first paragraph in computing its taxable income for a taxation year only if it encloses, with its fiscal return it is required to file under section 1000 for the year,

(a)  the prescribed form containing the prescribed information; and

(b)  in relation to each major investment project of the corporation or partnership, referred to in the first paragraph,

i.  the financial statements relating to the eligible activities, in respect of the major investment project, for the taxation year or fiscal period, as the case may be,

ii.  a copy of the unrevoked initial qualification certificate issued to the corporation or partnership in relation to the major investment project, and

iii.  a copy of any valid annual qualification certificate issued for the taxation year or fiscal period, as the case may be, in relation to the major investment project.

For the purposes of subparagraph b of the first paragraph, a corporation’s share of an amount is equal to the proportion of that amount that the corporation’s share of the partnership’s income for the fiscal period is of the partnership’s income for the fiscal period.

2002, c. 9, s. 13.