I-3 - Taxation Act

Section 217.2 Disposition versions

2017-02-08

217.2. If an individual, other than a succession that is a graduated rate estate, carries on a business in a taxation year, a particular fiscal period of the business begins in the year and ends after the end of the year, and the individual has made an election referred to in the first paragraph of section 7.0.3 in respect of the business, where the particular fiscal period is a fiscal period referred to in the second paragraph of section 7, or has made an election under subsection 4 of section 249.1 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) in respect of the business, where the particular fiscal period is a fiscal period referred to in the third or fourth paragraph of section 7, the individual shall, if the election has not been revoked, include, in computing the individual’s income for the year from the business, the amount determined by the formula

(A - B) × (C / D).

For the purposes of the formula in the first paragraph,

(a)  A is the total of the individual’s income from the business for the fiscal periods of the business that end in the year;

(b)  B is the lesser of

i.  the aggregate of all amounts each of which is an amount included in the total determined under subparagraph a in respect of the business and that is deemed to be a taxable capital gain for the purposes of Title VI.5 of Book IV, and

ii.  the aggregate of all amounts deducted under the said Title VI.5 in computing the individual’s taxable income for the year;

(c)  C is the number of days on which the individual carries on the business that are both in the year and in the particular fiscal period; and

(d)  D is the number of days on which the individual carries on the business that are in fiscal periods of the business that end in the year.

Chapter V.2 of Title II of Book I applies in relation to an election made under subsection 4 of section 249.1 of the Income Tax Act in relation to a fiscal period referred to in the third or fourth paragraph of section 7.

1997, c. 31, s. 27; 2009, c. 5, s. 74; 2017, c. 1, s. 101.

2009-05-15

217.2. If an individual, other than a testamentary trust, carries on a business in a taxation year, a particular fiscal period of the business begins in the year and ends after the end of the year, and the individual has made an election referred to in the first paragraph of section 7.0.3 in respect of the business, where the particular fiscal period is a fiscal period referred to in the second paragraph of section 7, or has made an election under subsection 4 of section 249.1 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) in respect of the business, where the particular fiscal period is a fiscal period referred to in the third or fourth paragraph of section 7, the individual shall, if the election has not been revoked, include, in computing the individual’s income for the year from the business, the amount determined by the formula

(A - B) × (C / D).

For the purposes of the formula in the first paragraph,

(a)  A is the total of the individual’s income from the business for the fiscal periods of the business that end in the year;

(b)  B is the lesser of

i.  the aggregate of all amounts each of which is an amount included in the total determined under subparagraph a in respect of the business and that is deemed to be a taxable capital gain for the purposes of Title VI.5 of Book IV, and

ii.  the aggregate of all amounts deducted under the said Title VI.5 in computing the individual’s taxable income for the year;

(c)  C is the number of days on which the individual carries on the business that are both in the year and in the particular fiscal period; and

(d)  D is the number of days on which the individual carries on the business that are in fiscal periods of the business that end in the year.

Chapter V.2 of Title II of Book I applies in relation to an election made under subsection 4 of section 249.1 of the Income Tax Act in relation to a fiscal period referred to in the third or fourth paragraph of section 7.

1997, c. 31, s. 27; 2009, c. 5, s. 74.

2006-03-01

217.2. Where an individual, other than a testamentary trust, carries on a business in a taxation year, a particular fiscal period of the business begins in the year and ends after the end of the year, and the individual has elected under section 7.0.3 in respect of the business and the election has not been revoked, there shall be included in computing the individual’s income for the year from the business, the amount determined by the formula

(A − B) × (C / D).

For the purposes of the formula in the first paragraph,

(a)  A is the total of the individual’s income from the business for the fiscal periods of the business that end in the year;

(b)  B is the lesser of

i.  the aggregate of all amounts each of which is an amount included in the total determined under subparagraph a in respect of the business and that is deemed to be a taxable capital gain for the purposes of Title VI.5 of Book IV, and

ii.  the aggregate of all amounts deducted under the said Title VI.5 in computing the individual’s taxable income for the year;

(c)  C is the number of days on which the individual carries on the business that are both in the year and in the particular fiscal period; and

(d)  D is the number of days on which the individual carries on the business that are in fiscal periods of the business that end in the year.

1997, c. 31, s. 27.