I-3 - Taxation Act

Section 1135.4 Disposition versions

2009-05-15

1135.4. If, in respect of costs incurred by a particular corporation or a particular partnership to acquire a property described in any of sections 1135.3 to 1135.3.1, a person or a partnership has obtained, is entitled to obtain or may reasonably expect to obtain a benefit or advantage, other than a benefit or advantage that may reasonably be attributed to the acquisition of that property, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property, or in any other form or manner, the following rules apply:

(a)  for the purpose of computing the amount that the particular corporation may deduct in computing its tax otherwise payable under the first paragraph of section 1135.1 for a particular taxation year, the amount determined in accordance with subparagraph i of any of subparagraphs a to b of that first paragraph, in respect of the particular corporation for the particular year, in relation to those costs, is to be reduced by the amount of that benefit or advantage that the person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the particular corporation’s filing-due date for the particular year; and

(b)  for the purpose of computing the amount that the particular corporation may deduct in computing its tax otherwise payable under the first paragraph of section 1135.1 for a particular taxation year, if the particular corporation is a member of the particular partnership at the end of the fiscal period of the particular partnership that ends in the particular year, the amount determined in accordance with subparagraph ii of any of subparagraphs a to b of that first paragraph, in respect of the particular corporation for the particular year, in relation to those costs, is to be reduced

i.  by its share, for that fiscal period, of the amount of that benefit or advantage, relating to those costs, that the person, other than a person referred to in subparagraph ii, or the partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the day that is six months after the end of that fiscal period, and

ii.  by the amount of that benefit or advantage, relating to those costs, that the particular corporation or a person with which it does not deal at arm’s length has obtained, is entitled to obtain or may reasonably expect to obtain on or before the day that is six months after the end of that fiscal period;

(c)  (paragraph repealed).

2005, c. 38, s. 314; 2006, c. 36, s. 255; 2007, c. 12, s. 279; 2009, c. 5, s. 544.

2007-11-07

1135.4. If, in respect of costs incurred by a particular corporation or a particular partnership to acquire a property described in section 1135.3 or 1135.3.1, a person or a partnership has obtained, is entitled to obtain or may reasonably expect to obtain a benefit or advantage, other than a benefit or advantage that may reasonably be attributed to the acquisition of that property, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property, or in any other form or manner, the following rules apply:

(a)  for the purpose of computing the amount that the particular corporation may deduct in computing its tax otherwise payable under the first paragraph of section 1135.1 for a particular taxation year, the amount determined in accordance with subparagraph i of subparagraph a or b of that first paragraph, in respect of the particular corporation for the particular year, in relation to those costs, is to be reduced by the amount of that benefit or advantage that the person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the particular corporation’s filing-due date for the particular year; and

(b)  for the purpose of computing the amount that the particular corporation may deduct in computing its tax otherwise payable under the first paragraph of section 1135.1 for a particular taxation year, if the particular corporation is a member of the particular partnership at the end of the fiscal period of the particular partnership that ends in the particular year, the amount determined in accordance with subparagraph ii of subparagraph a or b of that first paragraph, in respect of the particular corporation for the particular year, in relation to those costs, is to be reduced

i.  by its share, for that fiscal period, of the amount of that benefit or advantage, relating to those costs, that the person, other than a person referred to in subparagraph ii, or the partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the day that is six months after the end of that fiscal period, and

ii.  by the amount of that benefit or advantage, relating to those costs, that the particular corporation or a person with which it does not deal at arm’s length has obtained, is entitled to obtain or may reasonably expect to obtain on or before the day that is six months after the end of that fiscal period;

(c)  (paragraph repealed).

2005, c. 38, s. 314; 2006, c. 36, s. 255; 2007, c. 12, s. 279.

2006-12-06

1135.4. If, in respect of costs incurred by a particular corporation or a particular partnership to acquire a property described in section 1135.3 or 1135.3.1, a person or a partnership has obtained, is entitled to obtain or may reasonably expect to obtain a benefit or advantage, other than a benefit or advantage that may reasonably be attributed to the acquisition of that property, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property, or in any other form or manner, the following rules apply:

(a)  for the purpose of computing the amount that the particular corporation may deduct in computing its tax otherwise payable under the first paragraph of section 1135.1 for a particular taxation year, the amount determined in accordance with subparagraph i of subparagraph a or b of that first paragraph, in respect of the particular corporation for the particular year, in relation to those costs, is to be reduced by the amount of that benefit or advantage that the person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the particular corporation’s filing-due date for the particular year;

(b)  for the purpose of computing the amount that the particular corporation may deduct in computing its tax otherwise payable under the first paragraph of section 1135.1 for a particular taxation year, if the particular corporation is a member of the particular partnership at the end of the fiscal period of the particular partnership that ends in the particular year, the amount determined in accordance with subparagraph ii of subparagraph a or b of that first paragraph, in respect of the particular corporation for the particular year, in relation to those costs, is to be reduced

i.  by its share, for that fiscal period, of the amount of that benefit or advantage, relating to those costs, that the person, other than a person referred to in subparagraph ii, or the partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the day that is six months after the end of that fiscal period, and

ii.  by the amount of that benefit or advantage, relating to those costs, that the particular corporation or a person with which it does not deal at arm’s length has obtained, is entitled to obtain or may reasonably expect to obtain on or before the particular corporation’s filing-due date for the particular year; and

(c)  for the purpose of computing, for a particular taxation year, the amount that the particular corporation may deduct in computing its tax otherwise payable under section 1135.2, the amount determined in accordance with section 1135.2, in respect of the particular corporation for the particular year, in relation to those costs, is to be reduced

i.  if the costs were incurred by the particular corporation, by the amount of that benefit or advantage that the person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the particular corporation’s filing-due date for the particular year, other than such a benefit or advantage that reduced, under paragraph a, the amount of those costs, and

ii.  if the costs were incurred by the particular partnership and the particular corporation is a member of the particular partnership at the end of the fiscal period of the particular partnership that ends in the particular year,

(1)  by the particular corporation’s share, for that fiscal period, of the amount of that benefit or advantage, relating to those costs, that the person, other than a person referred to in subparagraph 2, or the partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the day that is six months after the end of the fiscal period, other than such a benefit or advantage that reduced, under subparagraph i of paragraph b, the amount of those costs, or

(2)  by the amount of that benefit or advantage, relating to those costs, that the particular corporation or a person with which it does not deal at arm’s length has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the particular corporation’s filing-due date for the particular year, other than such a benefit or advantage that reduced, under subparagraph ii of paragraph b, the corporation’s share of those costs.

2005, c. 38, s. 314; 2006, c. 36, s. 255.

2006-03-01

1135.4. If, in respect of costs incurred by a particular corporation or a particular partnership to acquire a property described in section 1135.3, a person or a partnership has obtained, is entitled to obtain or may reasonably expect to obtain a benefit or advantage, other than a benefit or advantage that may reasonably be attributed to the acquisition of that property, whether in the form of a reimbursement, compensation, guarantee, in the form of proceeds of disposition of property which exceed the fair market value of the property, or in any other form or manner, the following rules apply:

(a)  for the purpose of computing the amount that the particular corporation may deduct in computing its tax otherwise payable under the first paragraph of section 1135.1 for a particular taxation year, the amount determined in accordance with subparagraph a of that first paragraph, in respect of the particular corporation for the particular year, in relation to those costs, is to be reduced by the amount of that benefit or advantage that the person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the particular corporation’s filing-due date for the particular year;

(b)  for the purpose of computing the amount that the particular corporation may deduct in computing its tax otherwise payable under the first paragraph of section 1135.1 for a particular taxation year, if the particular corporation is a member of the particular partnership at the end of the fiscal period of the particular partnership that ends in the particular year, the amount determined in accordance with subparagraph b of that first paragraph, in respect of the particular corporation for the particular year, in relation to those costs, is to be reduced

i.  by its share, for that fiscal period, of the amount of that benefit or advantage, relating to those costs, that the person, other than a person referred to in subparagraph ii, or the partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the day that is six months after the end of that fiscal period, and

ii.  by the amount of that benefit or advantage, relating to those costs, that the particular corporation or a person with which it does not deal at arm’s length has obtained, is entitled to obtain or may reasonably expect to obtain on or before the particular corporation’s filing-due date for the particular year; and

(c)  for the purpose of computing, for a particular taxation year, the amount that the particular corporation may deduct in computing its tax otherwise payable under section 1135.2, the amount determined in accordance with section 1135.2, in respect of the particular corporation for the particular year, in relation to those costs, is to be reduced

i.  if the costs were incurred by the particular corporation, by the amount of that benefit or advantage that the person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the particular corporation’s filing-due date for the particular year, other than such a benefit or advantage that reduced, under paragraph a, the amount of those costs, and

ii.  if the costs were incurred by the particular partnership and the particular corporation is a member of the particular partnership at the end of the fiscal period of the particular partnership that ends in the particular year,

(1)  by the particular corporation’s share, for that fiscal period, of the amount of that benefit or advantage, relating to those costs, that the person, other than a person referred to in subparagraph 2, or the partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the day that is six months after the end of the fiscal period, other than such a benefit or advantage that reduced, under subparagraph i of paragraph b, the amount of those costs, or

(2)  by the amount of that benefit or advantage, relating to those costs, that the particular corporation or a person with which it does not deal at arm’s length has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the particular corporation’s filing-due date for the particular year, other than such a benefit or advantage that reduced, under subparagraph ii of paragraph b, the corporation’s share of those costs.

2005, c. 38, s. 314.