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

Section 851.22.4r6 Disposition versions

2012-09-01

851.22.4R6. For the purposes of paragraph a of section 851.22.4R2, a taxpayer’s accrued return for a taxation year from a specified debt obligation, other than an obligation to which section 851.22.4R4 applies, is determined

(a)  using a reasonable method that,

i.  taking into account the extent to which the obligation differs from fixed payment obligations, is consistent with the principles implicit in the methods that can be used under section 851.22.4R4 for fixed payment obligations, and

ii.  is in accordance with generally accepted accounting practice for the measurement of profit from debt obligations; and

(b)  on the basis of reasonable assumptions with respect to the timing and amount of any payments to be made by the debtor under the obligation that are not fixed in their timing or amount, expressed in the primary currency of the obligation.

O.C. 390-2012, s. 64.