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

Section 851.22.11r1 Disposition versions

2012-09-01

851.22.11R1. In this division and in Divisions III and IV,

“amortization date” in respect of a specified debt obligation disposed of by a taxpayer means

(a)  subject to paragraphs b to d, the later of the day of disposition of the obligation and the day on which the debtor is required to make the final payment under the obligation, determined without regard to any option respecting the timing of payments under the obligation, other than an option that was exercised before the disposition;

(b)  subject to paragraphs c and d, the day of disposition of the obligation if the day on which the debtor is required to make the final payment under the obligation is not determinable for the purposes of paragraph a;

(c)  subject to paragraph d, the first day, if any, after the disposition on which the interest rate could change, if the obligation is one in respect of which the following conditions are satisfied:

i.  the obligation provides for stipulated interest payments,

ii.  the rate of interest for at least one period after the issuance of the obligation was not fixed on the day of issue, and

iii.  when the obligation was issued, it was reasonable to expect that the interest rate for each period would equal or approximate a reasonable market rate of interest for that period; and

(d)  if, for purposes of its financial statements, the taxpayer had a gain or loss from the disposition that is being amortized to profit, the last day of the amortization period;

“gain” from the disposition of a specified debt obligation means the gain from the disposition of the obligation, determined under subparagraph a of the first paragraph of section 851.22.9 of the Act;

“loss” from the disposition of a specified debt obligation means the loss from the disposition of the obligation determined under subparagraph b of the first paragraph of section 851.22.9 of the Act;

“residual portion” of a taxpayer’s gain or loss from the disposition of a specified debt obligation means the amount determined under paragraph b of section 851.22.12 of the Act;

“specified debt obligation” has the meaning assigned by the first paragraph of section 851.22.1 of the Act.

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