I-3 - Taxation Act

Section 146.2 Disposition versions

2006-03-01

146.2. Subject to section 772.6.1, a taxpayer may deduct, in computing the taxpayer’s income from a business for a taxation year, an amount not exceeding the lesser of

(a)  the amount of income or profits tax described in section 772.5.1 that

i.  is in respect of a property used in the business for a period of ownership by the taxpayer or in respect of a related transaction, as defined in section 772.2,

ii.  is paid by the taxpayer for the year,

iii.  is, because of section 772.5.1, not included in computing the taxpayer’s business-income tax or non-business-income tax, as defined in section 772.2, and

iv.  where the taxpayer is a corporation, is not an amount that can reasonably be regarded as having been paid in respect of income from a share of the capital stock of a foreign affiliate of the taxpayer; and

(b)  the portion of the taxpayer’s income for the year from the business that is attributable to the property for the period or to a related transaction, as defined in section 772.2.

2001, c. 53, s. 43; 2004, c. 8, s. 27.