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

Section 360r18 Disposition versions

2012-09-01

360R18. Subject to sections 360R15 and 360R16, a corporation that, after 7 November 1969, acquires in any manner whatsoever a particular property may deduct, in computing its income for a taxation year, an amount not exceeding the aggregate of the amounts each of which is an amount, determined in respect of an original owner of the particular property, equal to the lesser of

(a)  the earned depletion base of the original owner, immediately after the time when that owner disposed of the particular property, determined by assuming for that purpose, where the disposition resulted after 28 April 1978 from an amalgamation referred to in section 544 of the Act, that the original owner continued to exist after the time of the disposition and no property was acquired or disposed of in the course of the amalgamation, to the extent that the earned depletion base was not otherwise deducted in computing the income of the corporation for the year nor was deducted in computing the income of the corporation for a previous taxation year or in computing the income of the original owner or a predecessor owner of the particular property for any taxation year; and

(b)  the amount determined under the second paragraph.

The amount to which subparagraph b of the first paragraph refers is equal to 25% of the part attributable to an oil business and 33 1/3% of the part attributable to a mining business of the amount by which the part of the income of the corporation, determined before any deduction under section 88.4 of the Act respecting the application of the Taxation Act (chapter I-4) or Chapter X of Title VI of Book III of Part I of the Act, exceeds the amount determined under the third paragraph and as if that income included no amount designated under subparagraph 1 of subparagraph ii of subparagraph a of the third paragraph of section 418.17 of the Act, that may reasonably be attributed to

(a)  the amount included in computing its income for the year under paragraph e of section 330 of the Act, that may reasonably be attributed to the disposition by the corporation, in the year or in a previous taxation year, of any interest in or right to the particular property, to the extent that the proceeds of the disposition were not included in computing an amount for any previous taxation year under this subparagraph, section 360R62, subparagraph i of subparagraph a of the third paragraph of section 418.16 or 418.18 of the Act, subparagraph iii of subparagraph c of the first paragraph of section 418.20 of the Act, section 418.28 of the Act or section 88.4 of the Act respecting the application of the Taxation Act, to the extent that that section refers to Division A of subparagraph i of paragraph d of subsection 25 of section 29 of the Income Tax Application Rules (R.S.C. 1985, c. 2 (5th Suppl.));

(b)  its reserve amount for the year in respect of the original owner and each predecessor owner of the particular property;

(c)  the production obtained from the particular property; or

(d)  the processing, referred to in subparagraph ii or iii of paragraph b of section 360R21 or in paragraph b of section 360R25, using the particular property.

The amount to which the second paragraph refers is equal to the aggregate of the following amounts:

(a)  four times the part attributable to an oil business and 3 times the part attributable to a mining business of the aggregate of the other amounts deducted for the year under this section that may reasonably be attributed to the part of the income of the corporation for the year referred to in the second paragraph; and

(b)  the aggregate of the amounts each of which is an amount deducted for the year under any of sections 418.16, 418.18, 418.19 and 418.21 of the Act or under section 88.4 of the Act respecting the application of the Taxation Act, to the extent that that section refers to subsection 25 of section 29 of the Income Tax Application Rules, that may reasonably be attributed to the part of the income of the corporation for the year referred to in the second paragraph.

s. 360R7; O.C. 1981-80, s. 360R7; O.C. 3926-80, s. 11; R.R.Q., 1981, c. I-3, r. 1, s. 360R7; O.C. 2962-82, s. 38; Erratum, 1983 G.O. 2, 829; O.C. 500-83, s. 38; O.C. 2509-85, s. 10; O.C. 421-88, s. 7; O.C. 1076-88, s. 11; O.C. 91-94, s. 17; O.C. 35-96, s. 22; O.C. 1707-97, s. 98; O.C. 1454-99, s. 62; O.C. 1451-2000, s. 10; O.C. 1470-2002, s. 39; O.C. 134-2009, s. 1.