I-3 - Taxation Act

Section 262.2 Disposition versions

2017-02-08

262.2. The rule to which section 262.1 refers is the rule according to which the new gain is the positive amount, or the new loss is the negative amount, as the case may be, determined by the formula

A + B - C.

In the formula in the first paragraph,

(a)  A is

i.  if the taxpayer would, but for any application of section 736.0.0.1, recognize a new gain, the amount of the new gain, determined without reference to this section, or

ii.  if the taxpayer would, but for any application of section 736.0.0.1, recognize a new loss, the amount of the new loss, determined without reference to this section, expressed as a negative amount;

(b)  B is the aggregate of all amounts each of which is that portion of the amount of a capital loss sustained by the taxpayer before the particular time, in respect of the foreign currency debt and because of section 736.0.0.1, that can reasonably be attributed to

i.  the relevant part of the foreign currency debt at the particular time, or

ii.  the forgiven amount (within the meaning of section 485) in respect of the foreign currency debt at the particular time; and

(c)  C is the aggregate of all amounts each of which is that portion of the amount of a gain realized by the taxpayer before the particular time, in respect of the foreign currency debt and because of section 736.0.0.1, that can reasonably be attributed to

i.  the relevant part of the foreign currency debt at the particular time, or

ii.  the forgiven amount (within the meaning of section 485) in respect of the foreign currency debt at the particular time.

2010, c. 5, s. 29; 2017, c. 1, s. 114.

2010-04-20

262.2. The rule to which section 262.1 refers is the rule according to which the new gain is the positive amount, or the new loss is the negative amount, as the case may be, determined by the formula

A + B - C.

In the formula in the first paragraph,

(a)  A is

i.  if the corporation would, but for any application of section 736.0.0.1, recognize a new gain, the amount of the new gain, determined without reference to this section, or

ii.  if the corporation would, but for any application of section 736.0.0.1, recognize a new loss, the amount of the new loss, determined without reference to this section, expressed as a negative amount;

(b)  B is the aggregate of all amounts each of which is that portion of the amount of a capital loss sustained by the corporation before the particular time, in respect of the foreign currency debt and because of section 736.0.0.1, that can reasonably be attributed to

i.  the relevant part of the foreign currency debt at the particular time, or

ii.  the forgiven amount (within the meaning of section 485) in respect of the foreign currency debt at the particular time; and

(c)  C is the aggregate of all amounts each of which is that portion of the amount of a gain realized by the corporation before the particular time, in respect of the foreign currency debt and because of section 736.0.0.1, that can reasonably be attributed to

i.  the relevant part of the foreign currency debt at the particular time, or

ii.  the forgiven amount (within the meaning of section 485) in respect of the foreign currency debt at the particular time.

2010, c. 5, s. 29.