I-3 - Taxation Act

Section 1029.8.36.143 Disposition versions

2010-04-20

1029.8.36.143. (Repealed).

2001, c. 51, s. 189; 2010, c. 5, s. 158.

2006-03-01

1029.8.36.143. Where, before 1 January 2003, a corporation pays in a taxation year, in this section referred to as the “repayment year”, pursuant to a legal obligation, a particular amount that may reasonably be considered to be a repayment of government assistance or non-government assistance that reduced, because of paragraph a of section 1029.8.36.141, the amount of a particular qualified solicitation expenditure of the corporation in respect of a foreign investment fund, for the purpose of computing the amount that the corporation is deemed to have paid to the Minister in respect of the particular foreign investment fund for a taxation year under section 1029.8.36.129, the following rules apply:

(a)  the amount that the corporation is deemed to have paid to the Minister in respect of the fund under that section 1029.8.36.129 for the repayment year is deemed to be equal to the aggregate of

i.  the amount that, had there been no such repayment in the repayment year, the corporation would have been deemed to have paid to the Minister in respect of the fund under that section for that year, and

ii.  the lesser of

(1)  the amount by which the aggregate of all amounts each of which is the amount that, had there been no such repayment of government assistance or non-government assistance in the repayment year or a preceding taxation year, the corporation would have been deemed to have paid to the Minister in respect of the fund under that section 1029.8.36.129, without taking into account the amount that was attributed to the corporation for the year in respect of the fund pursuant to the agreement referred to in section 1029.8.36.135, as the case may be, for a particular taxation year that is the year in which the particular qualified solicitation expenditure was paid or one of the following two taxation years not subsequent to the repayment year, exceeds the aggregate of all amounts each of which is the amount that, but for this section, the corporation would have been deemed to have paid to the Minister in respect of the fund under section 1029.8.36.129 for such a particular taxation year, or an amount determined under this subparagraph ii, in respect of the corporation, for a taxation year preceding the repayment year, and

(2)  the amount determined in the second paragraph;

(b)  if the repayment occurs in the taxation year following the taxation year in which the particular qualified solicitation expenditure was paid, the particular amount is deemed, for the purpose of applying section 1029.8.36.129 to the taxation year following the repayment year, to be a qualified solicitation expenditure in respect of the foreign investment fund made by the corporation in the taxation year in which the particular qualified solicitation expenditure was paid; and

(c)  where applicable, the corporation is deemed, for the purpose of applying section 1029.8.36.129 in respect of the excess amount determined under subparagraph 1 of subparagraph ii of subparagraph a, to have carried out, in the repayment year, a qualified international financial transaction in respect of a foreign investment fund and to have operated an international financial centre in that year.

The amount to which subparagraph 2 of subparagraph ii of subparagraph a of the first paragraph refers is equal to the amount by which $300,000 exceeds the aggregate of all amounts each of which is an amount deemed under section 1029.8.36.129 or 1029.8.36.132 to have been paid to the Minister in respect of the fund

(a)  by the corporation for a taxation year preceding the repayment year;

(b)  where the corporation is a member of an associated group in the repayment year, by another member corporation of the group, in this section referred to as the “particular corporation”, for a taxation year ending in the repayment year and for any taxation year preceding that year, or by a taxpayer who is a member at the end of a fiscal period of a member partnership of the group, in this section referred to as the “particular partnership”, for a taxation year in which that fiscal period ended and ending in the repayment year and for any taxation year preceding that year; or

(c)  where the corporation was a member of an associated group in a taxation year preceding the repayment year, by another corporation, other than a corporation referred to in subparagraph b, that was a member corporation of the group, in this section referred to as the “particular corporation”, for a taxation year ending in that preceding taxation year and for any taxation year preceding that year, or by a taxpayer, other than a taxpayer referred to in subparagraph b, who was a member at the end of a fiscal period of a member partnership of the group, in this section referred to as the “particular partnership”, for a taxation year in which that fiscal period ended and ending in that preceding taxation year and for any taxation year preceding that year.

For the purposes of subparagraph c of the second paragraph, where the particular corporation or the particular partnership was a member of a particular associated group in a preceding taxation year or preceding fiscal period, of which the corporation was not a member, the corporation is deemed to be a member of the particular associated group in the preceding taxation year.

2001, c. 51, s. 189.