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

Section 92.5r7 Disposition versions

2012-09-01

92.5R7. In this section and section 92.5R6,

“specified cost” of a taxpayer’s interest in a payment under a debt obligation is its present value at the date of purchase computed using the specified interest rate; and

“specified interest rate” is 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 to the taxpayer in respect of the taxpayer’s total interest in the debt obligation, equal to the cost of that interest to the taxpayer.

s. 92.5R7; O.C. 7-87, s. 2; Erratum, 1988 G.O. 2, 2689; O.C. 1466-98, s. 12; O.C. 134-2009, s. 1.