I-4 - Act respecting the application of the Taxation Act

Section 37 Disposition versions

2019-06-19

37. The amount to which section 36 refers is equal to the greater of

(a)  the aggregate of the expenditures made or incurred by the taxpayer as a result of a transaction prior to 1 January 1972 for the acquisition of the government right or original right in this respect, to the extent that such expenditures were not otherwise deductible in computing the taxpayer’s income for any taxation year and would have been an incorporeal capital amount within the meaning of the Taxation Act (chapter I-3), as it read on 1 January 1972, if they had been made or incurred as a result of a transaction occurring after 31 December 1971; and

(b)  the fair market value to the taxpayer on 31 December 1971 of the right referred to in section 40, if no expenditure was made or incurred by the taxpayer for the acquisition of the right, or, if expenditures were made or incurred, where such expenditures would have been an incorporeal capital amount within the meaning of the Taxation Act, as it read on 1 January 1972, if they had been made or incurred as a result of a transaction occurring after 31 December 1971.

1973, c. 17, s. 145; 1973, c. 18, s. 37; 1975, c. 22, s. 267; 2005, c. 1, s. 299; 2019, c. 14, s. 471.

2005-03-17

37. The amount contemplated by section 36 is the lesser of:

(a)  the product obtained when the part of the amount receivable which may reasonably be considered as consideration which he receives from the disposition of a governmental right or for allowing its termination, is multiplied by the percentage contemplated therein; and

(b)  the amount by which the part of the amount receivable, contemplated in paragraph a, exceeds the greater of the following amounts:

i.  the aggregate of the expenditures made or incurred by the taxpayer as the result of a transaction prior to 1972 for the acquisition of the governmental right or original right in this respect, to the extent that such expenditures were not otherwise deducted in computing his income for any taxation year and would be an incorporeal capital amount if they had been made or incurred as the result of a transaction occurring after 1971;

ii.  the fair market value to the taxpayer on 31 December 1971 of the right referred to in section 40, if no expenditure was made or incurred by the taxpayer for the acquisition of the right, or, if expenditures were made or incurred, where such expenditures would have been an incorporeal capital amount if they had been made or incurred as the result of a transaction occurring after 1971.

1973, c. 17, s. 145; 1973, c. 18, s. 37; 1975, c. 22, s. 267; 2005, c. 1, s. 299.

1977-12-31

37. The amount contemplated by section 36 is the lesser of:

(a)  the product obtained when the part of the amount receivable which may reasonably be considered as consideration which he receives from the disposition of a governmental right or for allowing its termination, is multiplied by the percentage contemplated therein; and

(b)  the amount by which the part of the amount receivable, contemplated in paragraph a, exceeds the greater of the following amounts:

i.  the aggregate of the expenditures made or incurred by the taxpayer as the result of a transaction prior to 1972 for the acquisition of the governmental right or original right in this respect, to the extent that such expenditures were not otherwise deducted in computing his income for any taxation year and would be an intangible capital amount if they had been made or incurred as the result of a transaction occurring after 1971;

ii.  the fair market value to the taxpayer on 31 December 1971 of the right referred to in section 40, if no expenditure was made or incurred by the taxpayer for the acquisition of the right, or, if expenditures were made or incurred, where such expenditures would have been an intangible capital amount if they had been made or incurred as the result of a transaction occurring after 1971.

1973, c. 17, s. 145; 1973, c. 18, s. 37; 1975, c. 22, s. 267.