I-3, r. 1 - Regulation respecting the Taxation Act

Section 130r120.2 Disposition versions

2023-02-08

130R120.2. For the purposes of section 130R120, in respect of property of a class in Schedule B that is accelerated investment incentive property of a taxpayer solely because of subparagraph i of paragraph b of the definition of “accelerated investment incentive property” in the first paragraph of section 130R3, the following rules apply:

(a)  the following amounts incurred by any person or partnership, in respect of the property, are not to be included under subparagraph a of the third paragraph of section 130R120 in respect of the class:

i.  amounts incurred before 21 November 2018, unless

(1)  the property was acquired after 20 November 2018 by a person or partnership, referred to in this subparagraph i as the “transferee”, from another person or partnership, referred to in this subparagraph i as the “transferor”,

(2)  the transferee was either the taxpayer, or a person or partnership that does not deal at arm’s length with the taxpayer, and

(3)  the transferor dealt at arm’s length with the transferee and held the property as inventory, and

ii.  amounts incurred after 20 November 2018, if amounts are deemed under section 130R3.1 to have been deducted under paragraph a of section 130 or the second paragraph of section 130.1 of the Act, in respect of those amounts incurred; and

(b)  any amount excluded from the amount determined under subparagraph a of the third paragraph of section 130R120 in respect of the class, pursuant to paragraph a, is to be included under subparagraph a of the fourth paragraph of section 130R120 in respect of the class, unless no amount in respect of the property would be so included if the property were not accelerated investment incentive property of the taxpayer.

O.C. 164-2021, s. 19; O.C. 90-2023, s. 12.

2021-03-10

130R120.2. For the purposes of section 130R120, in respect of property of a class in Schedule B that is accelerated investment incentive property of a taxpayer solely because of subparagraph i of paragraph b of the definition of “accelerated investment incentive property” in the first paragraph of section 130R3, the following rules apply:

(a)  no amount is to be included, in respect of the property, under subparagraph a of the third paragraph of section 130R120 in respect of the class to the extent that the amount includes expenditures incurred by any person or partnership before 21 November 2018, unless the person or partnership from which the taxpayer acquired the property dealt at arm’s length with the taxpayer and held the property as inventory; and

(b)  any amount excluded from the amount determined under subparagraph a of the third paragraph of section 130R120 in respect of the class, pursuant to paragraph a, is to be included under subparagraph a of the fourth paragraph of section 130R120 in respect of the class, unless no amount in respect of the property would be so included if the property were not accelerated investment incentive property of the taxpayer.

O.C. 164-2021, s. 19.