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

Section 360r61 Disposition versions

2019-02-27

360R61. Where at any time after 12 November 1981 control of a corporation is considered, for the purposes of section 418.26 of the Act, to have been acquired by a person or group of persons or where a corporation ceases, on or before 26 April 1995, to be exempt from tax under Part I of the Act on its taxable income, the following rules must be taken into account for the purposes of sections 360R15 to 360R20 and 360R42 to 360R64:

(a)  a joint election is deemed to have been filed in respect of the acquisition in accordance with section 360R16;

(b)  the corporation is deemed, after that time, to be a corporation that, at that time, acquired from an original owner all of the property that was owned by it immediately before that time;

(c)  the earned depletion base of the corporation immediately before that time is deemed not to be that of the corporation immediately after that time but that of the original owner immediately after that time;

(d)  where the corporation, referred to in this paragraph as the “transferee”, is, at that time and immediately before that time, a particular person referred to in subsection 5 of section 544 of the Act, or a subsidiary wholly-owned corporation, within the meaning of that subsection, of another corporation, referred to in this paragraph and in section 360R62 as the “transferor”,

i.  the transferor may designate in favour of the transferee, for a taxation year of the transferor ending after that time, if throughout that year the transferee is such particular person or such subsidiary wholly-owned corporation of the transferor, an amount not exceeding the amount referred to in section 360R62, for the purpose of making a deduction under section 360R18 in respect of the expenditures incurred before that time by the transferee and when it was such particular person or such subsidiary wholly-owned corporation of the transferor, to the extent that the amount so designated was not designated in favour of another taxpayer under this paragraph or in favour of any taxpayer under subparagraph f of the first paragraph of section 418.26 of the Act and only if both corporations agree to avail themselves of this paragraph for that year and so notify the Minister in writing in the fiscal return of the transferor under Part I of the Act for that year; and

ii.  the amount so designated is deemed, for the purposes of computing the amount under section 360R18, an income of the transferee from the sources described in any of paragraphs a to c, as the case may be, of section 360R62 for its taxation year during which that taxation year of the transferor ends and not an income of the transferor from those sources for that year;

(e)  where, at that time and immediately before that time, the corporation, referred to in this paragraph as the “transferee”, and another corporation, referred to in this paragraph as the “transferor”, are both subsidiary wholly-owned corporations, within the meaning of subsection 5 of section 544 of the Act, of the same particular person referred to in that subsection 5, and where the transferee and the transferor agree to avail themselves of this paragraph for a taxation year of the transferor ending after that time and so notify the Minister thereof in writing in the fiscal return of the transferor under Part I of the Act for that year, paragraph d applies for that year to the transferee and the transferor as if one of them were, in relation to the other, the particular person referred to in subsection 5 of section 544 of the Act;

(f)  where that time is subsequent to 15 January 1987 and where, at that time, the corporation is a member of a partnership that is, at that time, the owner of a property,

i.  for the purposes of paragraph b, the corporation is deemed to have been the owner, immediately before that time, of the part of that property owned by the partnership at that time, corresponding to the percentage of its share in the aggregate of the amounts that would be paid to all the members of the partnership if it were dissolved at that time,

ii.  for the purposes of subparagraphs c and d of the second paragraph of section 360R18 for a taxation year ending after that time, the lesser of the following amounts is deemed to be the income of the corporation for the year that may reasonably be attributed to the production from the property or to the processing referred to in subparagraph ii or iii of paragraph b of section 360R21 or in paragraph b of section 360R25 using the property:

(1)  its share of the part of the income of the partnership for the fiscal period of the partnership ending in the year that may reasonably be attributed to the production from the property or to the processing referred to in subparagraph ii or iii of paragraph b of section 360R21 or in paragraph b of section 360R25 using the property, and

(2)  the amount that would be determined for the year under subparagraph 1, if its share of the income of the partnership for the fiscal period of the partnership ending in the year were determined on the basis of the percentage of its share referred to in subparagraph i.

s. 360R28.2; O.C. 2509-85, s. 28; O.C. 421-88, s. 17; Erratum, 1988 G.O. 2, 2537; O.C. 91-94, s. 34; O.C. 35-96, s. 54; O.C. 1707-97, s. 98; O.C. 1451-2000, s. 12; O.C. 134-2009, s. 1; O.C. 1303-2009, s. 12; O.C. 117-2019, s. 14.

2012-09-01

360R61. Where at any time after 12 November 1981 control of a corporation is considered, for the purposes of section 418.26 of the Act, to have been acquired by a person or group of persons or where a corporation ceases, on or before 26 April 1995, to be exempt from tax under Part I of the Act on its taxable income, the following rules must be taken into account for the purposes of sections 360R15 to 360R20 and 360R42 to 360R64:

(a)  a joint election is deemed to have been filed in respect of the acquisition in accordance with section 360R16;

(b)  the corporation is deemed, after that time, to be a corporation that, at that time, acquired from an original owner all of the property that was owned by it immediately before that time;

(c)  the earned depletion base of the corporation immediately before that time is deemed not to be that of the corporation immediately after that time but that of the original owner immediately after that time;

(d)  where the corporation, referred to in this paragraph as the “transferee”, is, at that time and immediately before that time, a particular person referred to in subsection 5 of section 544 of the Act, or a subsidiary wholly-owned corporation, within the meaning of that subsection, of another corporation, referred to in this paragraph and in section 360R62 as the “transferor”,

i.  the transferor may designate in favour of the transferee, for a taxation year of the transferor ending after that time, if throughout that year the transferee is such particular person or such subsidiary wholly-owned corporation of the transferor, an amount not exceeding the amount referred to in section 360R62, for the purpose of making a deduction under section 360R18 in respect of the expenditures incurred before that time by the transferee and when it was such particular person or such subsidiary wholly-owned corporation of the transferor, to the extent that the amount so designated was not designated in favour of another taxpayer under this paragraph or in favour of any taxpayer under subparagraph f of the first paragraph of section 418.26 of the Act and only if both corporations agree to avail themselves of this paragraph for that year and so notify the Minister in writing in the fiscal return of the transferor under Part I of the Act for that year; and

ii.  the amount so designated is deemed, for the purposes of computing the amount under section 360R18, an income of the transferee from the sources described in any of paragraphs a to c, as the case may be, of section 360R62 for its taxation year during which that taxation year of the transferor ends and not an income of the transferor from those sources for that year;

(e)  where, at that time and immediately before that time, the corporation, referred to in this paragraph as the “transferee”, and another corporation, referred to in this paragraph as the “transferor”, are both subsidiary wholly-owned corporations, within the meaning of subsection 5 of section 544 of the Act, of the same particular person referred to in that subsection 5, and where the transferee and the transferor agree to avail themselves of this paragraph for a taxation year of the transferor ending after that time and so notify the Minister thereof in writing in the fiscal return of the transferor under Part I of the Act for that year, paragraph d applies for that year to the transferee and the transferor as if one of them were, in relation to the other, the particular person referred to in subsection 5 of section 544 of the Act;

(f)  where that time is subsequent to 15 January 1987 and where, at that time, the corporation is a member of a partnership that is, at that time, the owner of a property,

i.  for the purposes of paragraph b, the corporation is deemed to have been the owner, immediately before that time, of the part of that property owned by the partnership at that time, corresponding to the percentage of its share in the aggregate of the amounts that would be paid to all the members of the partnership if it were dissolved at that time,

ii.  for the purposes of subparagraphs c and d of the second paragraph of section 360R18 for a taxation year ending after that time, the lesser of the following amounts is deemed to be the income of the corporation for the year that may reasonably be attributed to the production from the property or to the processing referred to in subparagraph ii or iii of paragraph b of section 360R21 or in paragraph b of section 360R25 using the property:

(1)  its share of the part of the income of the partnership for the fiscal period of the partnership ending in the year that may reasonably be attributed to the production from the property or to the processing referred to in subparagraph ii or iii of paragraph b of section 360R21 or in paragraph b of section 360R25 using the property, and

(2)  the amount that would be determined for the year under subparagraph 1, if its share of the income of the partnership for the fiscal year of the partnership ending in the year were determined on the basis of the percentage of its share referred to in subparagraph i.

s. 360R28.2; O.C. 2509-85, s. 28; O.C. 421-88, s. 17; Erratum, 1988 G.O. 2, 2537; O.C. 91-94, s. 34; O.C. 35-96, s. 54; O.C. 1707-97, s. 98; O.C. 1451-2000, s. 12; O.C. 134-2009, s. 1; O.C. 1303-2009, s. 12.