I-3 - Taxation Act

Section 21.4.26 Disposition versions

2011-04-01

21.4.26. Despite sections 21.4.19 and 21.4.22, for the purposes of this Act and the Tax Administration Act (chapter A-6.002) in respect of a functional currency year (in this section referred to as the “particular taxation year”) of a taxpayer, the following rules apply:

(a)  for the purpose of computing the payments that the taxpayer is required to make in relation to the particular taxation year under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph a:

i.  each estimated amount described in subparagraph i of that subparagraph a, or in subparagraph 1 of subparagraph iii of that subparagraph a, that is payable by the taxpayer for the particular taxation year is to be determined by converting that amount, as determined in the taxpayer’s elected functional currency, to Canadian currency using the relevant spot rate for the day on or before which the amount is required to be paid,

ii.  the taxpayer’s first basic provisional account referred to in subparagraph i of that subparagraph a for the particular taxation year is to be determined, if the particular taxation year is the taxpayer’s first functional currency year, without reference to this chapter and, in any other case, as if the tax payable by the taxpayer for the taxpayer’s functional currency year (in this paragraph referred to as the “first base year”) preceding the particular taxation year were equal to the total of

(1)  the aggregate of the payments that the taxpayer is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph a, as the case may be, determined in accordance with this subparagraph ii or with subparagraph i or iii, as the case may be, in respect of the first base year, and

(2)  the remainder of the tax payable by the taxpayer under subparagraph b of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph b, as the case may be, determined in accordance with paragraph b, in respect of the first base year,

iii.  the taxpayer’s second basic provisional account described in subparagraph ii of that subparagraph a for the particular taxation year is to be determined, if the particular taxation year is the taxpayer’s first functional currency year or the taxpayer’s taxation year that follows the taxpayer’s first functional currency year, without reference to this chapter and, in any other case, as if the tax payable by the taxpayer for the taxpayer’s functional currency year (in this subparagraph referred to as the “second base year”) preceding the first base year were equal to the total of

(1)  the aggregate of the payments that the taxpayer is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph a, as the case may be, determined in accordance with this subparagraph iii or with subparagraph i or ii, as the case may be, in respect of the second base year, and

(2)  the remainder of the tax payable by the taxpayer under subparagraph b of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph b, as the case may be, determined in accordance with paragraph b, in respect of the second base year, and

iv.  those payments must correspond to the payments based on a method described in that subparagraph a that is referred to in the fourth paragraph of section 1038 in respect of the taxpayer in relation to the particular taxation year;

(b)  the remainder of the tax payable by the taxpayer for the particular taxation year under subparagraph b of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph b, is equal to the amount obtained by converting to Canadian currency, using the relevant spot rate for the taxpayer’s balance-due day for the particular taxation year, the amount by which the tax payable by the taxpayer under this Part or under any of Parts IV, IV.1, VI and VI.1, as the case may be, for the particular taxation year, expressed in the taxpayer’s elected functional currency, exceeds the aggregate of all amounts each of which is the amount obtained by converting the amount of a payment that the taxpayer is required to make in relation to that Part in respect of the particular taxation year, determined under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph a, as the case may be, and with reference to any of subparagraphs i, ii and iii of subparagraph a, to the taxpayer’s elected functional currency using the relevant spot rate for the day on or before which the payment is required to be made;

(c)  for the purpose of computing an amount (other than tax) that is payable by the taxpayer for the particular taxation year under this Part or under any of Parts IV, IV.1, VI and VI.1, or under the Tax Administration Act in relation to an amount that is payable under any of those Parts, the tax payable by the taxpayer for the particular taxation year under that Part is deemed to be equal to the total of

i.  the aggregate of the payments that the taxpayer is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph a, as the case may be, determined in accordance with any of subparagraphs i, ii and iii of subparagraph a in respect of the particular taxation year, and

ii.  the remainder of the tax payable by the taxpayer under subparagraph b of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph b, as the case may be, determined in accordance with paragraph b, in respect of the particular taxation year;

(d)  any amount of tax that is payable under this Act (otherwise than under this Part or under any of Parts IV, IV.1, VI and VI.1) by the taxpayer for the particular taxation year is, if applicable, to be determined by converting the amount, as determined in the taxpayer’s elected functional currency, to Canadian currency using the relevant spot rate for the day on or before which the amount is required to be paid;

(e)  in relation to any particular amount that is deemed under this Part to have been paid at a particular time on account of an amount payable by the taxpayer under this Act for the particular taxation year,

i.  if, for the purpose of computing the payments that the taxpayer is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph a, a particular provision of this Part establishes the portion of the particular amount that the taxpayer is deemed to have paid to the Minister on account of the aggregate of the taxpayer’s tax payable for the particular taxation year under this Part and the taxpayer’s tax payable for the particular taxation year under Parts IV, IV.1, VI and VI.1, on the date on or before which each of those payments is required to be made,

(1)  the first excess amount referred to in the computation, provided for in that particular provision, of the portion of the particular amount in relation to a particular date is to be determined with reference to the particular amount as determined in the taxpayer’s elected functional currency and by converting each portion of the particular amount, referred to in relation to an earlier date in the computation of that excess amount and as determined in Canadian currency, to the taxpayer’s elected functional currency using the relevant spot rate for that earlier date, and is equal to the amount obtained by converting that excess amount so determined to Canadian currency using the relevant spot rate for the particular date, and

(2)  the amount by which the particular amount, as determined in the taxpayer’s elected functional currency, exceeds the aggregate of all amounts each of which is the amount obtained by converting the amount—determined, with reference to subparagraph 1, in Canadian currency under the particular provision in respect of the particular amount in relation to a particular date—to the taxpayer’s elected functional currency using the relevant spot rate for the particular date, is to be converted to Canadian currency using the relevant spot rate for the day that includes the particular time, and

ii.  if subparagraph i does not apply in respect of the particular amount, the particular amount, as determined in the taxpayer’s elected functional currency, is to be converted to Canadian currency using the relevant spot rate for the day that includes the particular time;

(f)  for the purpose of applying the second paragraph of section 1135.1 to the taxpayer in respect of the particular taxation year, the excess amount referred to in subparagraph i of subparagraph b of that second paragraph in relation to a particular date is to be determined with reference to the amount determined in accordance with the first paragraph of that section, as determined in the taxpayer’s elected functional currency and by converting each portion of that amount, referred to in relation to an earlier date in the computation of that excess amount and as determined in Canadian currency, to the taxpayer’s elected functional currency using the relevant spot rate for that earlier date, and is equal to the amount obtained by converting that excess amount so determined to Canadian currency using the relevant spot rate for the particular date;

(g)  for the purposes of section 1.2.1 of the Tax Administration Act, the amount of the taxpayer’s paid-up capital for the particular taxation year, as determined in the taxpayer’s elected functional currency and in the manner provided for in that section, is to be converted to Canadian currency using the relevant spot rate for the last day of the particular taxation year;

(h)  for the purposes of section 59.2.2 of the Tax Administration Act, the amount of an income referred to in the first paragraph of that section in relation to the particular taxation year, as determined in the taxpayer’s elected functional currency, is to be converted to Canadian currency using the relevant spot rate for the taxpayer’s balance-due day for the particular taxation year; and

(i)  any amount payable by the taxpayer for the particular taxation year under this Act, or under the Tax Administration Act in relation to such an amount, is to be paid in Canadian currency.

2010, c. 5, s. 11; 2010, c. 31, s. 175.

2010-04-20

21.4.26. Despite sections 21.4.19 and 21.4.22, for the purposes of this Act and the Act respecting the Ministère du Revenu (chapter M-31) in respect of a functional currency year (in this section referred to as the “particular taxation year”) of a taxpayer, the following rules apply:

(a)  for the purpose of computing the payments that the taxpayer is required to make in relation to the particular taxation year under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph a:

i.  each estimated amount described in subparagraph i of that subparagraph a, or in subparagraph 1 of subparagraph iii of that subparagraph a, that is payable by the taxpayer for the particular taxation year is to be determined by converting that amount, as determined in the taxpayer’s elected functional currency, to Canadian currency using the relevant spot rate for the day on or before which the amount is required to be paid,

ii.  the taxpayer’s first basic provisional account referred to in subparagraph i of that subparagraph a for the particular taxation year is to be determined, if the particular taxation year is the taxpayer’s first functional currency year, without reference to this chapter and, in any other case, as if the tax payable by the taxpayer for the taxpayer’s functional currency year (in this paragraph referred to as the “first base year”) preceding the particular taxation year were equal to the total of

(1)  the aggregate of the payments that the taxpayer is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph a, as the case may be, determined in accordance with this subparagraph ii or with subparagraph i or iii, as the case may be, in respect of the first base year, and

(2)  the remainder of the tax payable by the taxpayer under subparagraph b of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph b, as the case may be, determined in accordance with paragraph b, in respect of the first base year,

iii.  the taxpayer’s second basic provisional account described in subparagraph ii of that subparagraph a for the particular taxation year is to be determined, if the particular taxation year is the taxpayer’s first functional currency year or the taxpayer’s taxation year that follows the taxpayer’s first functional currency year, without reference to this chapter and, in any other case, as if the tax payable by the taxpayer for the taxpayer’s functional currency year (in this subparagraph referred to as the “second base year”) preceding the first base year were equal to the total of

(1)  the aggregate of the payments that the taxpayer is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph a, as the case may be, determined in accordance with this subparagraph iii or with subparagraph i or ii, as the case may be, in respect of the second base year, and

(2)  the remainder of the tax payable by the taxpayer under subparagraph b of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph b, as the case may be, determined in accordance with paragraph b, in respect of the second base year, and

iv.  those payments must correspond to the payments based on a method described in that subparagraph a that is referred to in the fourth paragraph of section 1038 in respect of the taxpayer in relation to the particular taxation year;

(b)  the remainder of the tax payable by the taxpayer for the particular taxation year under subparagraph b of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph b, is equal to the amount obtained by converting to Canadian currency, using the relevant spot rate for the taxpayer’s balance-due day for the particular taxation year, the amount by which the tax payable by the taxpayer under this Part or under any of Parts IV, IV.1, VI and VI.1, as the case may be, for the particular taxation year, expressed in the taxpayer’s elected functional currency, exceeds the aggregate of all amounts each of which is the amount obtained by converting the amount of a payment that the taxpayer is required to make in relation to that Part in respect of the particular taxation year, determined under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph a, as the case may be, and with reference to any of subparagraphs i, ii and iii of subparagraph a, to the taxpayer’s elected functional currency using the relevant spot rate for the day on or before which the payment is required to be made;

(c)  for the purpose of computing an amount (other than tax) that is payable by the taxpayer for the particular taxation year under this Part or under any of Parts IV, IV.1, VI and VI.1, or under the Act respecting the Ministère du Revenu in relation to an amount that is payable under any of those Parts, the tax payable by the taxpayer for the particular taxation year under that Part is deemed to be equal to the total of

i.  the aggregate of the payments that the taxpayer is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph a, as the case may be, determined in accordance with any of subparagraphs i, ii and iii of subparagraph a in respect of the particular taxation year, and

ii.  the remainder of the tax payable by the taxpayer under subparagraph b of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph b, as the case may be, determined in accordance with paragraph b, in respect of the particular taxation year;

(d)  any amount of tax that is payable under this Act (otherwise than under this Part or under any of Parts IV, IV.1, VI and VI.1) by the taxpayer for the particular taxation year is, if applicable, to be determined by converting the amount, as determined in the taxpayer’s elected functional currency, to Canadian currency using the relevant spot rate for the day on or before which the amount is required to be paid;

(e)  in relation to any particular amount that is deemed under this Part to have been paid at a particular time on account of an amount payable by the taxpayer under this Act for the particular taxation year,

i.  if, for the purpose of computing the payments that the taxpayer is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 if they refer to that subparagraph a, a particular provision of this Part establishes the portion of the particular amount that the taxpayer is deemed to have paid to the Minister on account of the aggregate of the taxpayer’s tax payable for the particular taxation year under this Part and the taxpayer’s tax payable for the particular taxation year under Parts IV, IV.1, VI and VI.1, on the date on or before which each of those payments is required to be made,

(1)  the first excess amount referred to in the computation, provided for in that particular provision, of the portion of the particular amount in relation to a particular date is to be determined with reference to the particular amount as determined in the taxpayer’s elected functional currency and by converting each portion of the particular amount, referred to in relation to an earlier date in the computation of that excess amount and as determined in Canadian currency, to the taxpayer’s elected functional currency using the relevant spot rate for that earlier date, and is equal to the amount obtained by converting that excess amount so determined to Canadian currency using the relevant spot rate for the particular date, and

(2)  the amount by which the particular amount, as determined in the taxpayer’s elected functional currency, exceeds the aggregate of all amounts each of which is the amount obtained by converting the amount—determined, with reference to subparagraph 1, in Canadian currency under the particular provision in respect of the particular amount in relation to a particular date—to the taxpayer’s elected functional currency using the relevant spot rate for the particular date, is to be converted to Canadian currency using the relevant spot rate for the day that includes the particular time, and

ii.  if subparagraph i does not apply in respect of the particular amount, the particular amount, as determined in the taxpayer’s elected functional currency, is to be converted to Canadian currency using the relevant spot rate for the day that includes the particular time;

(f)  for the purpose of applying the second paragraph of section 1135.1 to the taxpayer in respect of the particular taxation year, the excess amount referred to in subparagraph i of subparagraph b of that second paragraph in relation to a particular date is to be determined with reference to the amount determined in accordance with the first paragraph of that section, as determined in the taxpayer’s elected functional currency and by converting each portion of that amount, referred to in relation to an earlier date in the computation of that excess amount and as determined in Canadian currency, to the taxpayer’s elected functional currency using the relevant spot rate for that earlier date, and is equal to the amount obtained by converting that excess amount so determined to Canadian currency using the relevant spot rate for the particular date;

(g)  for the purposes of section 1.2.1 of the Act respecting the Ministère du Revenu, the amount of the taxpayer’s paid-up capital for the particular taxation year, as determined in the taxpayer’s elected functional currency and in the manner provided for in that section, is to be converted to Canadian currency using the relevant spot rate for the last day of the particular taxation year;

(h)  for the purposes of section 59.2.2 of the Act respecting the Ministère du Revenu, the amount of an income referred to in the first paragraph of that section in relation to the particular taxation year, as determined in the taxpayer’s elected functional currency, is to be converted to Canadian currency using the relevant spot rate for the taxpayer’s balance-due day for the particular taxation year; and

(i)  any amount payable by the taxpayer for the particular taxation year under this Act, or under the Act respecting the Ministère du Revenu in relation to such an amount, is to be paid in Canadian currency.

2010, c. 5, s. 11.