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

Section 771.1r4 Disposition versions

2017-12-20

771.1R4. Where a corporation is a member of a partnership at any time in a taxation year, the following rules apply:

(a)  for the purposes of determining the gross cost of a property held by the partnership, the definition of “gross cost” in section 771.1R1 applies with the necessary modifications and with “, subparagraph c of the second paragraph of section 736 of the Act and the third paragraph of that section” struck out;

(b)  for the purposes of the definition of “cost of capital” in section 771.1R1, the cost of capital of the corporation for the year, otherwise determined, is increased by the agreed proportion, in respect of the corporation for the fiscal period of the partnership that ends in the year, of the amount that would be the cost of capital of the partnership for its fiscal period ending in the taxation year if that definition and section 771.1R2 applied to the partnership with the necessary modifications;

(c)  for the purposes of the definition of “cost of labour” in section 771.1R1, the cost of labour of the corporation for the year, otherwise determined, is increased by the agreed proportion, in respect of the corporation for the fiscal period of the partnership that ends in the year, of the amount that would be the cost of labour of the partnership for that fiscal period if that definition and section 771.1R3 applied to the partnership with the necessary modifications; and

(d)  for the purposes of the expression “cost of primary and manufacturing sectors labour” in section 771.1R1, the cost of primary and manufacturing sectors labour of the corporation for the year, otherwise determined, is increased by the agreed proportion, in respect of the corporation for the fiscal period of the partnership that ends in the year, of the amount that would be the cost of primary and manufacturing sectors labour of the partnership for that fiscal period if that definition applied to the partnership with the necessary modifications.

O.C. 1182-2017, s. 9.