I-3 - Taxation Act

Section 737.18.16 Disposition versions

2021-01-01

737.18.16. (Repealed).

2002, c. 9, s. 13; 2019, c. 14, s. 196.

2006-03-01

737.18.16. Where, at any time, a corporation or partnership, in this section referred to as the “acquirer”, acquired all or substantially all of a recognized business from another corporation or partnership, in this section referred to as the “vendor”, and the Minister of Finance previously authorized the acquisition for the purposes of this Title, the following rules apply:

(a)  for the purposes of this Title,

i.  for the purpose of computing the prior loss attributable to eligible activities of the acquirer for a taxation year or fiscal period that ends after that time, there shall be added to the amount otherwise represented by A in the formula in the definition of “prior loss attributable to eligible activities” in the first paragraph of section 737.18.14, unless it is otherwise included in that amount, the part that is reasonably attributable to the recognized business of the amount by which the aggregate of the following amounts exceeds the amount represented by C or F in the formula in subparagraph a or b of the first paragraph of section 737.18.17, in respect of the vendor for that taxation year or fiscal period:

(1)  the amount by which the amount determined under subparagraph b or e of the second paragraph of section 737.18.17, in respect of the vendor for the taxation year or fiscal period, exceeds the amount determined in its respect under subparagraph a or d of that second paragraph for that taxation year or fiscal period, and

(2)  the prior loss attributable to eligible activities of the vendor for that taxation year or fiscal period, and

ii.  for the purpose of computing the prior loss attributable to eligible activities of the vendor for a taxation year or fiscal period that ends after that time, there shall be added to the amount otherwise represented by B in the formula in the definition of “prior loss attributable to eligible activities” in the first paragraph of section 737.18.14, the amount referred to in subparagraph ii, in respect of the acquirer for such a taxation year or fiscal period;

(b)  for the purposes of subparagraphs a and b or d and e of the second paragraph of section 737.18.17,

i.  the taxation year or fiscal period of the vendor that includes that time is deemed to end immediately before that time, and

ii.  the taxation year or fiscal period of the acquirer that includes that time is deemed to begin at that time; and

(c)  for the purposes of subparagraph ii of subparagraph b of the third paragraph of section 737.18.17, the initial qualification certificate issued to the vendor, in relation to the major investment project, is deemed to have been issued, from that time, to the acquirer.

2002, c. 9, s. 13.