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

Section 92.5r5 Disposition versions

2012-09-01

92.5R5. The amount referred to in paragraph a of section 92.5R4 for a taxation year is the amount of interest that would be determined in respect of the debt obligation if the interest thereon for that year were computed on a compound interest basis using the maximum of all rates each of which is a rate computed in respect of each possible circumstance under which an interest of the taxpayer in the debt obligation could mature or be surrendered or retracted, and using assumptions concerning the interest rate and compounding period that would result in a present value, at the date of purchase of the interest, of all the maximum payments thereunder, equal to the cost thereof to the taxpayer.

s. 92.5R5; O.C. 7-87, s. 2; O.C. 1466-98, s. 12; O.C. 134-2009, s. 1.