I-3 - Taxation Act

Section 140.1.3 Disposition versions

2006-03-01

140.1.3. For the purposes of subparagraph b of the second paragraph of section 140.1, the specified reserve adjustment for a loan of a taxpayer for a taxation year is the amount determined by the formula

0.1 (A × B × C / 365).

In the formula provided for in the first paragraph,

(a)  A is the carrying amount of the impaired loan that is used or would be used in determining the interest income on the loan for the taxation year in accordance with generally accepted accounting principles;

(b)  B is the effective interest rate on the loan for the year determined in accordance with generally accepted accounting principles; and

(c)  C is the number of days in the taxation year on which the loan is impaired.

2001, c. 7, s. 23.