I-3 - Taxation Act

Section 726.42 Disposition versions

2021-06-02

726.42. An eligible taxpayer for a taxation year ending before 1 January 2026 who, at the end of the year, is a certified forest producer under the Sustainable Forest Development Act (chapter A-18.1) in respect of a private forest, or is a member of a partnership that is such a certified forest producer in respect of a private forest at the end of a fiscal period of the partnership that ends in the year, may deduct in computing taxable income for the year, if the taxpayer encloses the documents described in the third paragraph with the fiscal return the taxpayer is required to file for the year under section 1000, an amount not exceeding the lesser of $170,000 and 85% of the amount determined by the formula

(A − B) + (C − D).

In the formula in the first paragraph,

(a)  A is the aggregate of all amounts each of which is the eligible taxpayer’s income deriving from recognized commercial activities for the year in respect of a private forest;

(b)  B is the aggregate of all amounts each of which is the eligible taxpayer’s loss deriving from recognized commercial activities for the year in respect of a private forest;

(c)  C is the aggregate of all amounts each of which is the eligible taxpayer’s share of the partnership’s income deriving from recognized commercial activities for its fiscal period that ends in the year in respect of a private forest; and

(d)  D is the aggregate of all amounts each of which is the eligible taxpayer’s share of the partnership’s loss deriving from recognized commercial activities for its fiscal period that ends in the year in respect of a private forest.

The documents to which the first paragraph refers are

(a)  the prescribed form containing prescribed information; and

(b)  a copy of the valid qualification certificate issued to the eligible taxpayer or to the partnership, as the case may be, attesting to the eligible taxpayer’s or the partnership’s capacity as a certified forest producer in respect of the private forest.

For the purposes of subparagraphs c and d of the second paragraph, the share, for a fiscal period of a partnership, of a taxpayer who is a member of the partnership of the income or loss of the partnership deriving from recognized commercial activities for the fiscal period in respect of a private forest is equal to the agreed proportion of the income or loss in respect of the taxpayer for the fiscal period.

2017, c. 29, s. 112; 2019, c. 14, s. 191; 2021, c. 14, s. 64.

2019-06-19

726.42. An eligible taxpayer for a taxation year ending before 1 January 2021 who, at the end of the year, is a certified forest producer under the Sustainable Forest Development Act (chapter A-18.1) in respect of a private forest, or is a member of a partnership that is such a certified forest producer in respect of a private forest at the end of a fiscal period of the partnership that ends in the year, may deduct in computing taxable income for the year, if the taxpayer encloses the documents described in the third paragraph with the fiscal return the taxpayer is required to file for the year under section 1000, an amount not exceeding the lesser of $170,000 and 85% of the amount determined by the formula

(A − B) + (C − D).

In the formula in the first paragraph,

(a)  A is the aggregate of all amounts each of which is the eligible taxpayer’s income deriving from recognized commercial activities for the year in respect of a private forest;

(b)  B is the aggregate of all amounts each of which is the eligible taxpayer’s loss deriving from recognized commercial activities for the year in respect of a private forest;

(c)  C is the aggregate of all amounts each of which is the eligible taxpayer’s share of the partnership’s income deriving from recognized commercial activities for its fiscal period that ends in the year in respect of a private forest; and

(d)  D is the aggregate of all amounts each of which is the eligible taxpayer’s share of the partnership’s loss deriving from recognized commercial activities for its fiscal period that ends in the year in respect of a private forest.

The documents to which the first paragraph refers are

(a)  the prescribed form containing prescribed information; and

(b)  a copy of the valid qualification certificate issued to the eligible taxpayer or to the partnership, as the case may be, attesting to the eligible taxpayer’s or the partnership’s capacity as a certified forest producer in respect of the private forest.

For the purposes of subparagraphs c and d of the second paragraph, the share, for a fiscal period of a partnership, of a taxpayer who is a member of the partnership of the income or loss of the partnership deriving from recognized commercial activities for the fiscal period in respect of a private forest is equal to the agreed proportion of the income or loss in respect of the taxpayer for the fiscal period.

2017, c. 29, s. 112; 2019, c. 14, s. 191.

2017-12-07

726.42. An eligible taxpayer for a taxation year ending before 1 January 2021 who, at the end of the year, is a certified forest producer under the Sustainable Forest Development Act (chapter A-18.1) in respect of a private forest, or is a member of a partnership that is such a certified forest producer in respect of a private forest at the end of a fiscal period of the partnership that ends in the year, may deduct in computing taxable income for the year, if the taxpayer encloses the documents described in the third paragraph with the fiscal return the taxpayer is required to file for the year under section 1000, an amount not exceeding the lesser of $170,000 and 85% of the aggregate of

(a)  the amount determined by the formula

A − B; and

(b)  the amount determined by the formula

C − D.

In the formulas in the first paragraph,

(a)  A is the aggregate of all amounts each of which is the eligible taxpayer’s income deriving from recognized commercial activities for the year in respect of a private forest;

(b)  B is the aggregate of all amounts each of which is the eligible taxpayer’s loss deriving from recognized commercial activities for the year in respect of a private forest;

(c)  C is the aggregate of all amounts each of which is the eligible taxpayer’s share of the partnership’s income deriving from recognized commercial activities for its fiscal period that ends in the year in respect of a private forest; and

(d)  D is the aggregate of all amounts each of which is the eligible taxpayer’s share of the partnership’s loss deriving from recognized commercial activities for its fiscal period that ends in the year in respect of a private forest.

The documents to which the first paragraph refers are

(a)  the prescribed form containing prescribed information; and

(b)  a copy of the valid qualification certificate issued to the eligible taxpayer or to the partnership, as the case may be, attesting to the eligible taxpayer’s or the partnership’s capacity as a certified forest producer in respect of the private forest.

For the purposes of subparagraphs c and d of the second paragraph, the share, for a fiscal period of a partnership, of a taxpayer who is a member of the partnership of the income or loss of the partnership deriving from recognized commercial activities for the fiscal period in respect of a private forest is equal to the agreed proportion of the income or loss in respect of the taxpayer for the fiscal period.

2017, c. 29, s. 112.