I-3 - Taxation Act

Section 409 Disposition versions

2020-09-24

409. A taxpayer’s Canadian development expenses do not however include

(a)  any consideration given by the taxpayer for any share or any right in or to a share, except as provided by paragraph e of section 408;

(b)  any expense described in paragraph e of section 408 and incurred by another taxpayer to the extent that the expense is a Canadian development expense of that other taxpayer by virtue of that paragraph, a Canadian exploration expense of that other taxpayer by virtue of paragraph e of section 395 or a Canadian oil and gas property expense of that other taxpayer by virtue of paragraph c of section 418.2;

(c)  any amount included at any time in the capital cost to the taxpayer of any depreciable property of a prescribed class;

(c.1)  an expense that is the cost, or any part of the cost, to the taxpayer of any depreciable property of a prescribed class that was acquired after 31 December 1987; or

(d)  the taxpayer’s share of any consideration, expense, cost or expenditure referred to in any of paragraphs a to c given or incurred, as the case may be, by a partnership.

1975, c. 22, s. 90; 1982, c. 5, s. 97; 1998, c. 16, s. 153; 2004, c. 8, s. 76; 2020, c. 16, s. 189.

2006-03-01

409. A taxpayer’s Canadian development expenses do not however include

(a)  any consideration given by the taxpayer for any share, or for any interest therein or right thereto, except as provided by paragraph e of section 408;

(b)  any expense described in paragraph e of section 408 and incurred by another taxpayer to the extent that the expense is a Canadian development expense of that other taxpayer by virtue of that paragraph, a Canadian exploration expense of that other taxpayer by virtue of paragraph e of section 395 or a Canadian oil and gas property expense of that other taxpayer by virtue of paragraph c of section 418.2;

(c)  any amount included at any time in the capital cost to the taxpayer of any depreciable property of a prescribed class;

(c.1)  an expense that is the cost, or any part of the cost, to the taxpayer of any depreciable property of a prescribed class that was acquired after 31 December 1987; or

(d)  the taxpayer’s share of any consideration, expense, cost or expenditure referred to in any of paragraphs a to c given or incurred, as the case may be, by a partnership.

1975, c. 22, s. 90; 1982, c. 5, s. 97; 1998, c. 16, s. 153; 2004, c. 8, s. 76.