I-3 - Taxation Act

Section 21.4.33 Disposition versions

2010-04-20

21.4.33. If, for the purposes of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), the Canadian tax results of a corporation, within the meaning of subsection 1 of section 261 of that Act, for one or more taxation years are to be computed, under subsection 18 of that section 261, using the particular currency referred to in that subsection 18, the Québec tax results of the corporation for that taxation year or for those taxation years are to be computed, subject to the second paragraph, using that particular currency.

The Québec tax results of a corporation for one or more taxation years are to be computed using a given currency if

(a)  at any time (in this paragraph referred to as the “transfer time”) one or more properties are directly or indirectly transferred

i.  by the corporation to another corporation (in this paragraph referred to as the “transferor” and the “transferee”, respectively), or

ii.  by another corporation to the corporation (in this paragraph referred to as the “transferor” and the “transferee”, respectively);

(b)  the transferor and the transferee are related at the transfer time or become related in the course of a series of transactions or events that includes the transfer;

(c)  the transfer time

i.  is, or would in the absence of sections 21.4.31 and 21.4.32 be, in a functional currency year of the transferor and the transferor and the transferee have, or would in the absence of those sections have, different tax reporting currencies at the transfer time, or

ii.  is, or would in the absence of sections 21.4.31 and 21.4.32 be, in a reversionary year of the transferor and is not in a reversionary year of the transferee;

(d)  it can reasonably be considered that one of the main purposes of the transfer or of any portion of a series of transactions or events that includes the transfer is to change, or to enable the changing of, the currency in which the Québec tax results in respect of the property, or property substituted for it, for a taxation year would otherwise be determined; and

(e)  the Minister directs that those Québec tax results be computed in the given currency.

2010, c. 5, s. 11.