I-3 - Taxation Act

Section 772.7 Disposition versions

2022-06-08

772.7. The deduction provided for in section 772.6 in respect of an individual for a taxation year shall not exceed the proportion of the individual’s tax otherwise payable under this Part for the year that

(a)  the amount for the year, if the individual is resident in Canada throughout the year, or, where the individual is not resident in Canada at any time in the year, for the part of the year throughout which the individual is resident in Canada, by which the total of the individual’s incomes exceeds the total of the individual’s losses from sources situated in a foreign country, computed

i.  on the assumption that no businesses were carried on by the individual in the foreign country through an establishment situated in that country and no amount was deducted under section 584 in computing the individual’s income for the year,

ii.  without taking into account any portion of income that is deductible under paragraph a of section 725 or any of sections 726.26, 737.16, 737.18.10, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9 and 726.20.2, by the individual in computing the individual’s taxable income for the year, and

iii.  without taking into account any income or loss from a source situated in the foreign country, if any income of the individual from the source would be tax-exempt income; is of

(b)  the amount by which

i.  either, if the individual is resident in Canada throughout the year, the aggregate of the individual’s income for the year and of all amounts each of which is an amount included in computing the individual’s taxable income for the year under any of sections 726.43 to 726.43.2 and 737.17, or, if the individual is not resident in Canada at any time in the year, the amount determined for the year in respect of the individual under the third paragraph of section 23, exceeds

ii.  the aggregate of all amounts each of which is an amount deductible under any of sections 725, 725.2 to 725.5.1, 726.26, 726.28, 737.16, 737.18.10, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7, 737.22.0.10, 737.22.0.13, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9, 726.20.2, 726.42 and 729, in computing the individual’s taxable income for the year.

The deduction provided for in section 772.6 in respect of a corporation for a taxation year in relation to a foreign country shall not exceed 10% of the proportion that the corporation’s business for the year carried on in Québec is of its business carried on in Canada or in Québec and elsewhere, as determined in the manner prescribed in the regulations made under section 771, of the amount for the year by which the total of the corporation’s incomes exceeds the total of the corporation’s losses, from sources situated in a foreign country, computed

(a)  on the assumption that no businesses were carried on by the corporation in the foreign country through an establishment situated in that country;

(b)  without taking into account any income from shares of the capital stock of a foreign affiliate of the corporation; and

(c)  (subparagraph repealed);

(d)  without taking into account any income or loss from a source situated in the foreign country, if any income of the corporation from the source would be tax-exempt income.

1995, c. 63, s. 82; 1997, c. 3, s. 71; 1997, c. 14, s. 130; 1997, c. 85, s. 167; 1999, c. 83, s. 108; 1999, c. 86, s. 99; 2000, c. 39, s. 264; 2001, c. 53, s. 135; 2002, c. 40, s. 77; 2003, c. 9, s. 103; 2004, c. 8, s. 148; 2004, c. 21, s. 208; 2006, c. 36, s. 78; 2010, c. 25, s. 81; 2013, c. 10, s. 58; 2017, c. 29, s. 158; 2019, c. 14, s. 254; 2021, c. 14, s. 93; 2022, c. 23, s. 67.

2021-06-02

772.7. The deduction provided for in section 772.6 in respect of an individual for a taxation year shall not exceed the proportion of the individual’s tax otherwise payable under this Part for the year that

(a)  the amount for the year, if the individual is resident in Canada throughout the year, or, where the individual is not resident in Canada at any time in the year, for the part of the year throughout which the individual is resident in Canada, by which the total of the individual’s incomes exceeds the total of the individual’s losses from sources situated in a foreign country, computed

i.  on the assumption that no businesses were carried on by the individual in the foreign country through an establishment situated in that country and no amount was deducted under section 584 in computing the individual’s income for the year,

ii.  without taking into account any portion of income that is deductible under paragraph a of section 725 or any of sections 726.26, 737.14, 737.16, 737.18.10, 737.18.34, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9 and 726.20.2, by the individual in computing the individual’s taxable income for the year, and

iii.  without taking into account any income or loss from a source situated in the foreign country, if any income of the individual from the source would be tax-exempt income; is of

(b)  the amount by which

i.  either, if the individual is resident in Canada throughout the year, the aggregate of the individual’s income for the year and of all amounts each of which is an amount included in computing the individual’s taxable income for the year under any of sections 726.43 to 726.43.2 and 737.17, or, if the individual is not resident in Canada at any time in the year, the amount determined for the year in respect of the individual under the third paragraph of section 23, exceeds

ii.   the aggregate of all amounts each of which is an amount deductible under any of sections 725, 725.2 to 725.5, 726.26, 726.28, 737.14, 737.16, 737.16.1, 737.18.10, 737.18.34, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7, 737.22.0.10, 737.22.0.13, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9, 726.20.2, 726.42 and 729, in computing the individual’s taxable income for the year.

The deduction provided for in section 772.6 in respect of a corporation for a taxation year in relation to a foreign country shall not exceed 10% of the proportion that the corporation’s business for the year carried on in Québec is of its business carried on in Canada or in Québec and elsewhere, as determined in the manner prescribed in the regulations made under section 771, of the amount for the year by which the total of the corporation’s incomes exceeds the total of the corporation’s losses, from sources situated in a foreign country, computed

(a)  on the assumption that no businesses were carried on by the corporation in the foreign country through an establishment situated in that country;

(b)  without taking into account any income from shares of the capital stock of a foreign affiliate of the corporation;

(c)  without taking into account any portion of income that is deductible under section 737.14 by the corporation in computing the corporation’s taxable income for the year; and

(d)  without taking into account any income or loss from a source situated in the foreign country, if any income of the corporation from the source would be tax-exempt income.

1995, c. 63, s. 82; 1997, c. 3, s. 71; 1997, c. 14, s. 130; 1997, c. 85, s. 167; 1999, c. 83, s. 108; 1999, c. 86, s. 99; 2000, c. 39, s. 264; 2001, c. 53, s. 135; 2002, c. 40, s. 77; 2003, c. 9, s. 103; 2004, c. 8, s. 148; 2004, c. 21, s. 208; 2006, c. 36, s. 78; 2010, c. 25, s. 81; 2013, c. 10, s. 58; 2017, c. 29, s. 158; 2019, c. 14, s. 254; 2021, c. 14, s. 93.

2019-06-19

772.7. The deduction provided for in section 772.6 in respect of an individual for a taxation year shall not exceed the proportion of the individual’s tax otherwise payable under this Part for the year that

(a)  the amount for the year, if the individual is resident in Canada throughout the year, or, where the individual is not resident in Canada at any time in the year, for the part of the year throughout which the individual is resident in Canada, by which the total of the individual’s incomes exceeds the total of the individual’s losses from sources situated in a foreign country, computed

i.  on the assumption that no businesses were carried on by the individual in the foreign country through an establishment situated in that country and no amount was deducted under section 584 in computing the individual’s income for the year,

ii.  without taking into account any portion of income that is deductible under paragraph a of section 725 or any of sections 726.26, 737.14, 737.16, 737.18.10, 737.18.34, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9 and 726.20.2, by the individual in computing the individual’s taxable income for the year, and

iii.  without taking into account any income or loss from a source situated in the foreign country, if any income of the individual from the source would be tax-exempt income; is of

(b)  the amount by which

i.  either, if the individual is resident in Canada throughout the year, the aggregate of the individual’s income for the year and of all amounts each of which is an amount included in computing the individual’s taxable income for the year under section 726.35, 726.43 or 737.17, or, if the individual is not resident in Canada at any time in the year, the amount determined for the year in respect of the individual under the third paragraph of section 23, exceeds

ii.   the aggregate of all amounts each of which is an amount deductible under any of sections 725, 725.2 to 725.5, 726.26, 726.28, 737.14, 737.16, 737.16.1, 737.18.10, 737.18.34, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7, 737.22.0.10, 737.22.0.13, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9, 726.20.2, 726.33, 726.42 and 729, in computing the individual’s taxable income for the year.

The deduction provided for in section 772.6 in respect of a corporation for a taxation year in relation to a foreign country shall not exceed 10% of the proportion that the corporation’s business for the year carried on in Québec is of its business carried on in Canada or in Québec and elsewhere, as determined in the manner prescribed in the regulations made under section 771, of the amount for the year by which the total of the corporation’s incomes exceeds the total of the corporation’s losses, from sources situated in a foreign country, computed

(a)  on the assumption that no businesses were carried on by the corporation in the foreign country through an establishment situated in that country;

(b)  without taking into account any income from shares of the capital stock of a foreign affiliate of the corporation;

(c)  without taking into account any portion of income that is deductible under section 737.14 by the corporation in computing the corporation’s taxable income for the year; and

(d)  without taking into account any income or loss from a source situated in the foreign country, if any income of the corporation from the source would be tax-exempt income.

1995, c. 63, s. 82; 1997, c. 3, s. 71; 1997, c. 14, s. 130; 1997, c. 85, s. 167; 1999, c. 83, s. 108; 1999, c. 86, s. 99; 2000, c. 39, s. 264; 2001, c. 53, s. 135; 2002, c. 40, s. 77; 2003, c. 9, s. 103; 2004, c. 8, s. 148; 2004, c. 21, s. 208; 2006, c. 36, s. 78; 2010, c. 25, s. 81; 2013, c. 10, s. 58; 2017, c. 29, s. 158; 2019, c. 14, s. 254.

2017-12-07

772.7. The deduction provided for in section 772.6 in respect of an individual for a taxation year shall not exceed the proportion of the individual’s tax otherwise payable under this Part for the year that

(a)  the amount for the year, if the individual is resident in Canada throughout the year, or, where the individual is not resident in Canada at any time in the year, for the part of the year throughout which the individual is resident in Canada, by which the total of the individual’s incomes exceeds the total of the individual’s losses from sources situated in a foreign country, computed

i.  on the assumption that no businesses were carried on by the individual in the foreign country through an establishment situated in that country and no amount was deducted under section 584 in computing the individual’s income for the year,

ii.  without taking into account any portion of income that is deductible under paragraph a of section 725 or any of sections 726.26, 737.14, 737.16, 737.18.10, 737.18.34, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9 and 726.20.2, by the individual in computing the individual’s taxable income for the year, and

iii.  without taking into account any income or loss from a source situated in the foreign country, if any income of the individual from the source would be tax-exempt income; is of

(b)  the amount by which

i.  either, if the individual is resident in Canada throughout the year, the aggregate of the individual’s income for the year and of all amounts each of which is an amount included in computing the individual’s taxable income for the year under section 726.35, 726.43 or 737.17, or, if the individual is not resident in Canada at any time in the year, the amount determined for the year in respect of the individual under the third paragraph of section 23, exceeds

ii.   the aggregate of all amounts each of which is an amount deductible under any of sections 725, 725.2 to 725.6, 726.26, 726.28, 737.14, 737.16, 737.16.1, 737.18.10, 737.18.34, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7, 737.22.0.10, 737.22.0.13, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9, 726.20.2, 726.33, 726.42 and 729, in computing the individual’s taxable income for the year.

The deduction provided for in section 772.6 in respect of a corporation for a taxation year in relation to a foreign country shall not exceed 10% of the proportion that the corporation’s business for the year carried on in Québec is of its business carried on in Canada or in Québec and elsewhere, as determined in the manner prescribed in the regulations made under section 771, of the amount for the year by which the total of the corporation’s incomes exceeds the total of the corporation’s losses, from sources situated in a foreign country, computed

(a)  on the assumption that no businesses were carried on by the corporation in the foreign country through an establishment situated in that country;

(b)  without taking into account any income from shares of the capital stock of a foreign affiliate of the corporation;

(c)  without taking into account any portion of income that is deductible under section 737.14 by the corporation in computing the corporation’s taxable income for the year; and

(d)  without taking into account any income or loss from a source situated in the foreign country, if any income of the corporation from the source would be tax-exempt income.

1995, c. 63, s. 82; 1997, c. 3, s. 71; 1997, c. 14, s. 130; 1997, c. 85, s. 167; 1999, c. 83, s. 108; 1999, c. 86, s. 99; 2000, c. 39, s. 264; 2001, c. 53, s. 135; 2002, c. 40, s. 77; 2003, c. 9, s. 103; 2004, c. 8, s. 148; 2004, c. 21, s. 208; 2006, c. 36, s. 78; 2010, c. 25, s. 81; 2013, c. 10, s. 58; 2017, c. 29, s. 158.

2013-06-05

772.7. The deduction provided for in section 772.6 in respect of an individual for a taxation year shall not exceed the proportion of the individual’s tax otherwise payable under this Part for the year that

(a)  the amount for the year, if the individual is resident in Canada throughout the year, or, where the individual is not resident in Canada at any time in the year, for the part of the year throughout which the individual is resident in Canada, by which the total of the individual’s incomes exceeds the total of the individual’s losses from sources situated in a foreign country, computed

i.  on the assumption that no businesses were carried on by the individual in the foreign country through an establishment situated in that country and no amount was deducted under section 584 in computing the individual’s income for the year,

ii.  without taking into account any portion of income that is deductible under paragraph a of section 725 or any of sections 726.26, 737.14, 737.16, 737.18.10, 737.18.34, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9 and 726.20.2, by the individual in computing the individual’s taxable income for the year, and

iii.  without taking into account any income or loss from a source situated in the foreign country, if any income of the individual from the source would be tax-exempt income; is of

(b)  the amount by which

i.  either, if the individual is resident in Canada throughout the year, the aggregate of the individual’s income for the year and of all amounts each of which is an amount included in computing the individual’s taxable income for the year under section 726.35 or 737.17, or, if the individual is not resident in Canada at any time in the year, the amount determined for the year in respect of the individual under the third paragraph of section 23, exceeds

ii.   the aggregate of all amounts each of which is an amount deductible under any of sections 725, 725.2 to 725.6, 726.26, 726.28, 737.14, 737.16, 737.16.1, 737.18.10, 737.18.34, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7, 737.22.0.10, 737.22.0.13, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9, 726.20.2, 726.33 and 729, in computing the individual’s taxable income for the year.

The deduction provided for in section 772.6 in respect of a corporation for a taxation year in relation to a foreign country shall not exceed 10% of the proportion that the corporation’s business for the year carried on in Québec is of its business carried on in Canada or in Québec and elsewhere, as determined in the manner prescribed in the regulations made under section 771, of the amount for the year by which the total of the corporation’s incomes exceeds the total of the corporation’s losses, from sources situated in a foreign country, computed

(a)  on the assumption that no businesses were carried on by the corporation in the foreign country through an establishment situated in that country;

(b)  without taking into account any income from shares of the capital stock of a foreign affiliate of the corporation;

(c)  without taking into account any portion of income that is deductible under section 737.14 by the corporation in computing the corporation’s taxable income for the year; and

(d)  without taking into account any income or loss from a source situated in the foreign country, if any income of the corporation from the source would be tax-exempt income.

1995, c. 63, s. 82; 1997, c. 3, s. 71; 1997, c. 14, s. 130; 1997, c. 85, s. 167; 1999, c. 83, s. 108; 1999, c. 86, s. 99; 2000, c. 39, s. 264; 2001, c. 53, s. 135; 2002, c. 40, s. 77; 2003, c. 9, s. 103; 2004, c. 8, s. 148; 2004, c. 21, s. 208; 2006, c. 36, s. 78; 2010, c. 25, s. 81; 2013, c. 10, s. 58.

2010-10-27

772.7. The deduction provided for in section 772.6 in respect of an individual for a taxation year shall not exceed the proportion of the individual’s tax otherwise payable under this Part for the year that

(a)  the amount for the year, if the individual is resident in Canada throughout the year, or, where the individual is not resident in Canada at any time in the year, for the part of the year throughout which the individual is resident in Canada, by which the total of the individual’s incomes exceeds the total of the individual’s losses from sources situated in a foreign country, computed

i.  on the assumption that no businesses were carried on by the individual in the foreign country through an establishment situated in that country and no amount was deducted under section 584 in computing the individual’s income for the year,

ii.  without taking into account any portion of income that is deductible under paragraph a of section 725 or any of sections 726.26, 737.14, 737.16, 737.18.10, 737.18.34, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9 and 726.20.2, by the individual in computing the individual’s taxable income for the year, and

iii.  without taking into account any income or loss from a source situated in the foreign country, if any income of the individual from the source would be tax-exempt income; is of

(b)  the amount by which

i.  either, if the individual is resident in Canada throughout the year, the aggregate of the individual’s income for the year and of all amounts each of which is an amount included in computing the individual’s taxable income for the year under section 726.35 or 737.17, or, if the individual is not resident in Canada at any time in the year, the amount determined for the year in respect of the individual under the third paragraph of section 23, exceeds

ii.   the aggregate of all amounts each of which is an amount deductible under any of sections 725, 725.2 to 725.6, 726.26, 726.28, 737.14, 737.16, 737.16.1, 737.18.10, 737.18.34, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.7, 737.22.0.10, 737.22.0.13, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9, 726.20.2, 726.33 and 729, in computing the individual’s taxable income for the year.

The deduction provided for in section 772.6 in respect of a corporation for a taxation year in relation to a foreign country shall not exceed 10% of the proportion that the corporation’s business for the year carried on in Québec is of its business carried on in Canada or in Québec and elsewhere, as determined in the manner prescribed in the regulations made under section 771, of the amount for the year by which the total of the corporation’s incomes exceeds the total of the corporation’s losses, from sources situated in a foreign country, computed

(a)  on the assumption that no businesses were carried on by the corporation in the foreign country through an establishment situated in that country;

(b)  without taking into account any income from shares of the capital stock of a foreign affiliate of the corporation;

(c)  without taking into account any portion of income that is deductible under section 737.14 by the corporation in computing the corporation’s taxable income for the year; and

(d)  without taking into account any income or loss from a source situated in the foreign country, if any income of the corporation from the source would be tax-exempt income.

1995, c. 63, s. 82; 1997, c. 3, s. 71; 1997, c. 14, s. 130; 1997, c. 85, s. 167; 1999, c. 83, s. 108; 1999, c. 86, s. 99; 2000, c. 39, s. 264; 2001, c. 53, s. 135; 2002, c. 40, s. 77; 2003, c. 9, s. 103; 2004, c. 8, s. 148; 2004, c. 21, s. 208; 2006, c. 36, s. 78; 2010, c. 25, s. 81.

2006-12-06

772.7. The deduction provided for in section 772.6 in respect of an individual for a taxation year shall not exceed the proportion of the individual’s tax otherwise payable under this Part for the year that

(a)  the amount for the year, if the individual is resident in Canada throughout the year, or, where the individual is not resident in Canada at any time in the year, for the part of the year throughout which the individual is resident in Canada, by which the total of the individual’s incomes exceeds the total of the individual’s losses from sources situated in a foreign country, computed

i.  on the assumption that no businesses were carried on by the individual in the foreign country through an establishment situated in that country and no amount was deducted under section 584 in computing the individual’s income for the year,

ii.  without taking into account any portion of income that is deductible under paragraph a of section 725 or any of sections 726.26, 737.14, 737.16, 737.18.10, 737.18.34, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9 and 726.20.2, by the individual in computing the individual’s taxable income for the year, and

iii.  without taking into account any income or loss from a source situated in the foreign country, if any income of the individual from the source would be tax-exempt income; is of

(b)  the amount by which

i.  either, if the individual is resident in Canada throughout the year, the aggregate of the individual’s income for the year and of all amounts each of which is an amount included in computing the individual’s taxable income for the year under section 726.35 or 737.17, or, if the individual is not resident in Canada at any time in the year, the amount determined for the year in respect of the individual under the third paragraph of section 23, exceeds

ii.   the aggregate of all amounts each of which is an amount deductible under any of sections 725, 725.2 to 725.6, 726.26, 726.28, 737.14, 737.16, 737.16.1, 737.18.10, 737.18.28, 737.18.34, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.7, 737.22.0.10, 737.22.0.13, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9, 726.20.2, 726.33 and 729, in computing the individual’s taxable income for the year.

The deduction provided for in section 772.6 in respect of a corporation for a taxation year in relation to a foreign country shall not exceed 10% of the proportion that the corporation’s business for the year carried on in Québec is of its business carried on in Canada or in Québec and elsewhere, as determined in the manner prescribed in the regulations made under section 771, of the amount for the year by which the total of the corporation’s incomes exceeds the total of the corporation’s losses, from sources situated in a foreign country, computed

(a)  on the assumption that no businesses were carried on by the corporation in the foreign country through an establishment situated in that country;

(b)  without taking into account any income from shares of the capital stock of a foreign affiliate of the corporation;

(c)  without taking into account any portion of income that is deductible under section 737.14 by the corporation in computing the corporation’s taxable income for the year; and

(d)  without taking into account any income or loss from a source situated in the foreign country, if any income of the corporation from the source would be tax-exempt income.

1995, c. 63, s. 82; 1997, c. 3, s. 71; 1997, c. 14, s. 130; 1997, c. 85, s. 167; 1999, c. 83, s. 108; 1999, c. 86, s. 99; 2000, c. 39, s. 264; 2001, c. 53, s. 135; 2002, c. 40, s. 77; 2003, c. 9, s. 103; 2004, c. 8, s. 148; 2004, c. 21, s. 208; 2006, c. 36, s. 78.

2006-03-01

772.7. The deduction provided for in section 772.6 in respect of an individual for a taxation year shall not exceed the proportion of the individual’s tax otherwise payable under this Part for the year that

(a)  the amount for the year, if the individual is resident in Canada throughout the year, or, where the individual is not resident in Canada at any time in the year, for the part of the year throughout which the individual is resident in Canada, by which the total of the individual’s incomes exceeds the total of the individual’s losses from sources situated in a foreign country, computed

i.  on the assumption that no businesses were carried on by the individual in the foreign country through an establishment situated in that country and no amount was deducted under section 584 in computing the individual’s income for the year,

ii.  without taking into account any portion of income that is deductible under paragraph a of section 725 or any of sections 726.26, 737.14, 737.16, 737.18.10, 737.18.34, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9 and 726.20.2, by the individual in computing the individual’s taxable income for the year, and

iii.  without taking into account any income or loss from a source situated in the foreign country, if any income of the individual from the source would be tax-exempt income; is of

(b)  the amount by which

i.  either, where the individual is resident in Canada throughout the year, the aggregate of the individual’s income for the year and the amount included in computing the individual’s taxable income for the year under section 737.17 or, where the individual is not resident in Canada at any time in the year, the amount determined for the year in respect of the individual under the third paragraph of section 23, exceeds

ii.  the aggregate of all amounts each of which is an amount deductible under any of sections 725, 725.2 to 725.6, 726.26, 726.28, 737.14, 737.16, 737.16.1, 737.18.10, 737.18.28, 737.18.34, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.7, 737.22.0.10, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9, 726.20.2 and 729, in computing the individual’s taxable income for the year.

The deduction provided for in section 772.6 in respect of a corporation for a taxation year in relation to a foreign country shall not exceed 10% of the proportion that the corporation’s business for the year carried on in Québec is of its business carried on in Canada or in Québec and elsewhere, as determined in the manner prescribed in the regulations made under section 771, of the amount for the year by which the total of the corporation’s incomes exceeds the total of the corporation’s losses, from sources situated in a foreign country, computed

(a)  on the assumption that no businesses were carried on by the corporation in the foreign country through an establishment situated in that country;

(b)  without taking into account any income from shares of the capital stock of a foreign affiliate of the corporation;

(c)  without taking into account any portion of income that is deductible under section 737.14 by the corporation in computing the corporation’s taxable income for the year; and

(d)  without taking into account any income or loss from a source situated in the foreign country, if any income of the corporation from the source would be tax-exempt income.

1995, c. 63, s. 82; 1997, c. 3, s. 71; 1997, c. 14, s. 130; 1997, c. 85, s. 167; 1999, c. 83, s. 108; 1999, c. 86, s. 99; 2000, c. 39, s. 264; 2001, c. 53, s. 135; 2002, c. 40, s. 77; 2003, c. 9, s. 103; 2004, c. 8, s. 148; 2004, c. 21, s. 208.