I-0.4 - Mining Tax Act

Section 4.11 Disposition versions

2011-06-06

4.11. If a winding-up described in section 556 of the Taxation Act (chapter I-3) begins at a particular time and the parent and the subsidiary referred to in that section would, in the absence of this section, have different reporting currencies at the particular time, the following rules apply for the purpose of computing the subsidiary’s Québec mining results for its fiscal years that end after the particular time:

(1)  if the subsidiary’s reporting currency is Canadian currency,

(a)  despite section 4.6, section 4.7 is deemed to apply to the subsidiary in respect of its fiscal year that includes the particular time and each of its subsequent fiscal years,

(b)  the subsidiary is deemed to have as its elected functional currency the parent’s reporting currency, and

(c)  if the subsidiary’s fiscal year that includes the particular time would, in the absence of this section, be a reversionary year of the subsidiary, this chapter applies with the necessary modifications; and

(2)  if neither the subsidiary’s reporting currency nor the parent’s reporting currency is Canadian currency,

(a)  the subsidiary’s first reversionary year is deemed to end at the given time that is immediately after the time at which it began,

(b)  a new fiscal year of the subsidiary is deemed to begin immediately after the given time,

(c)  despite section 4.6, section 4.7 is deemed to apply to the subsidiary in respect of its fiscal year that includes the particular time and each of its subsequent fiscal years, and

(d)  the subsidiary is deemed to have as its elected functional currency the parent’s reporting currency.

2011, c. 6, s. 18.