I-3 - Taxation Act

Section 487.4.1 Disposition versions

2020-09-24

487.4.1. For the purposes of sections 487.1 to 487.6, the specified interest amount, for a year, in respect of a debt (in this section referred to as the “deemed loan”) contracted as or on account of a loan that is deemed to have been received under section 113.4 from a particular ultimate funder, is the amount determined by the formula

A × B / C.

In the formula in the first paragraph,

(a)  A is the total amount of interest for the year paid not later than 30 days after the end of the year in respect of all debts that are owing to the particular ultimate funder under one or more funding arrangements by one or more funders, but excluding any funders that are ultimate funders, and that gave rise to the deemed loan;

(b)  B is the average amount owing for the year in respect of the deemed loan; and

(c)  C is the aggregate of all amounts each of which is the average amount owing in the year as or on account of an amount owing in respect of a debt described in subparagraph a.

In this section, “funder”, “funding arrangement” and “ultimate funder” have the meaning assigned by section 113.7.

2020, c. 16, s. 73.