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

Section 851.22.4r4 Disposition versions

2012-09-01

851.22.4R4. For the purposes of paragraph a of section 851.22.4R2, a taxpayer’s accrued return for a taxation year from a fixed payment obligation under which each payment required to be made before the end of the year was made by the debtor when it was required to be made, is determined in accordance with the following steps:

(a)  determine, in the primary currency of the obligation, the portion of the taxpayer’s total return from the obligation that is allocated to each day in the year using

i.  the level-yield method described in section 851.22.4R5, or

ii.  any other reasonable method that is substantially similar to the level-yield method;

(b)  if the primary currency of the obligation is not Canadian currency, translate to Canadian currency the amount allocated to each day in the year as provided in paragraph a, using a reasonable method of translation; and

(c)  determine the total of all amounts each of which is the Canadian currency amount allocated to a day, in the year, at the beginning of which the taxpayer holds the obligation.

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