I-3 - Taxation Act

Section 135.8 Disposition versions

2006-03-01

135.8. Sections 135.4 and 135.5 do not apply to prohibit a deduction in a taxation year of an amount corresponding to the product obtained by multiplying by the percentage specified in the second paragraph any outlay or expense made or incurred before 1 January 1992 by

(a)  a corporation whose principal business is throughout the year the leasing, rental or sale, or the development for lease, rental or sale, or any combination thereof, of immovable property owned by it, to or for a person with whom it is dealing at arm’s length, or

(b)  a partnership each member of which is a corporation described in subparagraph a if the principal business of the partnership is throughout the year the leasing, rental or sale, or the development for lease, rental or sale, or any combination thereof, of immovable property held by it, to or for a person with whom each member of the partnership is dealing at arm’s length.

The percentage to which the first paragraph refers is equal to

(a)  80%, in respect of an outlay or expense made or incurred after 31 December 1987 and before 1 January 1989;

(b)  60%, in respect of an outlay or expense made or incurred after 31 December 1988 and before 1 January 1990;

(c)  40%, in respect of an outlay or expense made or incurred after 31 December 1989 and before 1 January 1991;

(d)  20%, in respect of an outlay or expense made or incurred after 31 December 1990 and before 1 January 1992.

1984, c. 15, s. 32; 1990, c. 59, s. 80; 1997, c. 3, s. 71.