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

Section 360r8 Disposition versions

2012-09-01

360R8. For the purposes of section 360R10 and paragraph d of the definition of “Canadian exploration and development overhead expense” in section 360R2,

(a)  a person and a corporation are connected

i.  where the person and the corporation are not dealing at arm’s length,

ii.  where the person has an equity percentage of at least 10% in the corporation, or

iii.  where another person has an equity percentage of at least 10% in the corporation and in the person, if the latter is a corporation;

(b)  a person and another person that is not a corporation are connected with each other if they are not dealing at arm’s length; and

(c)  the costs that a person has incurred comprise only

i.  an expense or an outlay that has been incurred or made and that is attributable to an operation described in that paragraph d, except an expense or an outlay described in paragraphs a to c of that definition, and

ii.  the part of its capital cost allowance for a property that may be depreciated for the taxation year that may be considered as related to the use that the taxpayer referred to in that subparagraph d made of that property, or to the use of the property in the performance of a service for the taxpayer.

For the purposes of the first paragraph, a partnership is deemed to be a person and its taxation year is deemed to be its fiscal period.

s. 360R5.1; O.C. 2962-82, s. 36; O.C. 500-83, s. 36; O.C. 2509-85, s. 8; O.C. 91-94, s. 14; O.C. 1707-97, s. 43; O.C. 1466-98, s. 126; O.C. 134-2009, s. 1.