I-3 - Taxation Act

Section 1029.8.36.0.32 Disposition versions

2006-03-01

1029.8.36.0.32. Where, in a taxation year, in this section referred to as the “repayment year”, a corporation pays, pursuant to a legal obligation, an amount that may reasonably be considered to be repayment of government assistance or non-government assistance that reduced, pursuant to section 1029.8.36.0.29, acquisition costs to, or rental expenses of, the corporation for the purpose of computing the amount that the corporation is deemed to have paid to the Minister for a particular taxation year under section 1029.8.36.0.25, the corporation is deemed, if it encloses the prescribed form with the fiscal return it is required to file for the repayment year under section 1000, to have paid to the Minister on the corporation’s balance-due day for the repayment year, on account of its tax payable for that year under this Part, an amount equal to the amount by which the amount that it would be deemed to have paid to the Minister for the particular year under section 1029.8.36.0.25, if any amount of such assistance so repaid at or before the end of the repayment year had reduced, for the particular year, the amount of any government assistance or non-government assistance referred to in section 1029.8.36.0.29, exceeds the aggregate of

(a)  the amount that the corporation is deemed to have paid to the Minister under section 1029.8.36.0.25 for the particular year; and

(b)  any amount that the corporation is deemed to have paid to the Minister for a taxation year preceding the repayment year under this section in respect of an amount of repayment of that assistance.

In addition, if a corporation carried on or could carry on its business in an information technology development centre in a particular taxation year that begins before 21 December 2001 for which the corporation is deemed to have paid an amount to the Minister in respect of acquisition costs or rental expenses under section 1029.8.36.0.6, as it read for the particular year, the first paragraph applies, in respect of an amount that may reasonably be considered to be repayment of assistance that reduced those costs or expenses for the purpose of computing that amount deemed to be paid, having regard to the following rules:

(a)  the references to sections 1029.8.36.0.25 and 1029.8.36.0.29, wherever they appear in the portion of the first paragraph before subparagraph b, shall be read respectively as references to sections 1029.8.36.0.6 and 1029.8.36.0.9, as they formerly read for the particular year; and

(b)  subparagraph b of the first paragraph shall be read as follows:

“(b) any amount that the corporation is deemed to have paid to the Minister for a taxation year preceding the repayment year in respect of an amount of repayment of that assistance, under this section or section 1029.8.36.0.11, as it read for that preceding taxation year.”

2000, c. 39, s. 176; 2002, c. 40, s. 149; 2003, c. 9, s. 237.