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

Section 130r18.1 Disposition versions

2017-04-12

130R18.1. For the purposes of sections 130R23.3 and 130R70.1, a taxpayer’s income for a taxation year from eligible liquefaction activities in respect of an eligible liquefaction facility of the taxpayer is determined as if

(a)  the taxpayer carried on a separate business

i.  the only income of which is any combination of,

(1)  in the case of natural gas that is owned by the taxpayer at the time it enters the taxpayer’s eligible liquefaction facility, income from the sale by the taxpayer of the natural gas that has been liquefied, whether sold as liquefied natural gas or regasified natural gas; and

(2)  in any other case, income reasonably attributable to the liquefaction of natural gas at the taxpayer’s eligible liquefaction facility, and

ii.  in respect of which the only permitted deductions in computing the separate business income are those deductions that are attributable to income described in subparagraph i and, in the case of income described in subparagraph 1 of subparagraph i, that are reasonably attributable to income derived after the natural gas enters the eligible liquefaction facility; and

(b)  in the case of income described in subparagraph 1 of subparagraph i of paragraph a, the taxpayer acquired the natural gas that has been liquefied at a cost equal to the fair market value of the natural gas at the time it entered the eligible liquefaction facility.

O.C. 321-2017, s. 7.