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

Section 851.22.18r2 Disposition versions

2017-04-12

851.22.18R2. (Revoked).

O.C. 390-2012, s. 64; O.C. 321-2017, s. 42.

2012-09-01

851.22.18R2. In the event of a winding-up of a subsidiary to which sections 556 to 564.1 and 565 of the Act apply, the following rules apply:

(a)  the number of days referred to in subparagraph a of the second paragraph of section 851.22.18R1 in respect of the subsidiary is to be determined without including any days that are after the particular day on which the subsidiary’s assets were distributed to its parent on the winding-up; and

(b)  the amount prescribed for the purposes of section 851.22.18 of the Act in respect of the parent, for its taxation year that includes the particular day referred to in paragraph a, is equal to the total of the amount that would be determined under section 851.22.18R1 in respect of the parent for the year if the parent’s transition deduction did not include the subsidiary’s transition deduction, and the amount that would be determined under that section 851.22.18R1 in respect of the parent for the year if

i.  the number of days referred to in subparagraph a of the second paragraph of section 851.22.18R1 were determined without including the particular day and the days before that day, and

ii.  the amount determined under subparagraph b of the second paragraph of section 851.22.18R1 were equal to the subsidiary’s transition deduction.

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