I-3 - Taxation Act

Section 771.4 Disposition versions

2006-03-01

771.4. The rules contemplated in section 771.3 are as follows:

(a)  the portion of the amount contemplated in section 771.3 that is deductible in computing the income of the other corporation for a taxation year from an eligible business carried on by it is deemed to be income of the particular corporation for the particular year from an eligible business carried on by it;

(b)  any outlay or expense, to the extent that that outlay or expense may reasonably be regarded as having been made or incurred by the particular corporation for the purpose of gaining the portion contemplated in paragraph a, is deemed to have been made or incurred for the purpose of gaining the income contemplated in paragraph a.

1985, c. 25, s. 131; 1986, c. 15, s. 120; 1987, c. 21, s. 30; 1997, c. 3, s. 71; 1997, c. 85, s. 330.