I-3 - Taxation Act

Section 737.18.17.3 Disposition versions

2024-05-07

737.18.17.3. Where, at any time, a corporation or a 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”), in relation to a large investment project, and the Minister of Finance previously authorized the transfer of the carrying out of the large investment project to the acquirer, according to a qualification certificate issued by that Minister to the acquirer in respect of the project,

(a)  the following rules must, if applicable, be taken into consideration for the purposes of this Title:

i.  where subparagraph a of the first paragraph of section 737.18.17.5 applies to the acquirer or to a corporation that is a member of the acquirer and where the prior loss attributable to eligible activities of the acquirer for a taxation year or fiscal period that ends after that time is to be computed, 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 737.18.17.1, unless it is otherwise included in that amount, the portion 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 i or ii of subparagraph a of the first paragraph of section 737.18.17.5, in respect of the vendor for that taxation year or fiscal period:

(1)  the amount, in respect of the vendor for the taxation year or fiscal period, by which the amount determined under subparagraph b or e of the second paragraph of section 737.18.17.5 exceeds the amount determined under subparagraph a or d of that second paragraph, and

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

ii.  where subparagraph a of the first paragraph of section 737.18.17.5 applies to the vendor or to a corporation that is a member of the vendor and where the prior loss attributable to eligible activities of the vendor for a taxation year or fiscal period that ends after that time is to be computed, 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 737.18.17.1 the portion of the excess amount determined under subparagraph i, in respect of the acquirer for such a taxation year or fiscal period, or that would be determined under that subparagraph i if it applied to the acquirer;

(b)  the following rules must, if applicable, be taken into consideration when determining, for the purposes of subparagraphs a and b or d and e of the second paragraph of section 737.18.17.5, the amount referred to in those subparagraphs in relation to the large investment project:

i.  where subparagraph a of the first paragraph of section 737.18.17.5 applies to the vendor or to a corporation that is a member of the vendor, the vendor’s taxation year or fiscal period that includes that time is deemed to end immediately before that time, and

ii.  where subparagraph a of the first paragraph of section 737.18.17.5 applies to the acquirer or to a corporation that is a member of the acquirer, the acquirer’s taxation year or fiscal period that includes that time is deemed to begin at that time; and

(c)  the following rules must, if applicable, be taken into consideration for the purposes of subparagraphs b and c of the third paragraph of section 737.18.17.5.1:

i.  where subparagraph b of the first paragraph of section 737.18.17.5 applies to the vendor or to a corporation that is a member of the vendor,

(1)  the vendor’s taxation year or fiscal period that includes the day on which that time occurs is deemed to end at the end of that day, and

(2)  the last day of the vendor’s tax-free period, in respect of the large investment project, is deemed to correspond to the day that includes that time, and

ii.  where subparagraph b of the first paragraph of section 737.18.17.5 applies to the acquirer or to a corporation that is a member of the acquirer, the acquirer’s taxation year or fiscal period that includes the day on which that time occurs is deemed to begin at the beginning of that day.

2015, c. 21, s. 260; 2024, c. 11, s. 62.

2015-10-21

737.18.17.3. Where, at any time, a corporation or a 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”), in relation to a large investment project, and the Minister of Finance previously authorized the transfer of the carrying out of the large investment project to the acquirer, according to a qualification certificate issued by that Minister to the acquirer in respect of the project,

(a)  the following rules must be taken into consideration 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 737.18.17.1, unless it is otherwise included in that amount, the portion 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 737.18.17.5, in respect of the vendor for that taxation year or fiscal period:

(1)  the amount, in respect of the vendor for the taxation year or fiscal period, by which the amount determined under subparagraph b or e of the second paragraph of section 737.18.17.5 exceeds the amount determined under subparagraph a or d of that second paragraph, 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 737.18.17.1, the portion of the excess amount referred to in subparagraph i, in respect of the acquirer for such a taxation year or fiscal period; and

(b)  the following rules must be taken into consideration when determining, for the purposes of subparagraphs a and b or d and e of the second paragraph of section 737.18.17.5, the amount referred to therein in relation to the large investment project:

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.

2015, c. 21, s. 260.