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

Section 92.5r8 Disposition versions

2012-09-01

92.5R8. The amount referred to in paragraph c of section 92.5R4 for a taxation year is the greater of

(a)  the maximum amount of interest on the debt obligation in respect of the year; and

(b)  the maximum amount of interest that would be determined in respect of the debt obligation if interest thereon for that year were computed on a compound interest basis using 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 issue of the debt obligation, of all the maximum payments thereunder, equal to its principal amount.

s. 92.5R8; O.C. 7-87, s. 2; O.C. 1466-98, s. 12; O.C. 134-2009, s. 1.