I-3 - Taxation Act

Section 772.11 Disposition versions

2022-06-08

772.11. An individual who is an employee of an international organization within the meaning of section 2 of the Foreign Missions and International Organizations Act (S.C. 1991, c. 41) may, if the individual is resident in Québec on the last day of a taxation year, deduct from the individual’s tax otherwise payable under this Part for the year the amount by which the aggregate of all amounts each of which is an amount paid by the individual to the organization as a levy to defray expenses of the organization, computed by reference to the remuneration received by the individual in the year from the organization in a manner similar to the manner in which income tax is computed, exceeds the aggregate of

(a)  the deduction granted to the individual in respect of the levies for the year under subsection 3 of section 126 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.));

(b)  (subparagraph repealed);

(c)  where the individual is required under section 127.5 of the Income Tax Act to pay tax for the year, an amount in respect of the levies is computed under subsection 2 of section 127.54 of that Act, for the purpose of determining the tax, and the amount so computed is equal

i.  to the amount referred to in paragraph a of that subsection 2, the amount that would be referred to in that paragraph if the reference therein to section 126 of that Act were replaced by a reference to subsection 3 of that section 126, or

ii.  to the amount referred to in paragraph b of that subsection 2, such portion of the amount referred to in that paragraph as may reasonably be regarded as attributable to income referred to in paragraph a of subsection 3 of section 126 of that Act.

However, the deduction provided for in the first paragraph in respect of an individual for a taxation year in respect of employment with an international organization shall not exceed the lesser of

(a)  the proportion of the individual’s tax otherwise payable under this Part for the year that

i.  the individual’s income for the year or, if the individual’s taxable income is computed in the manner prescribed in section 23, for the part of the year throughout which the individual was resident in Canada, from employment with that organization, except the portion of that income that is deductible under section 725 in computing the individual’s taxable income for the year, is of

ii.  the amount by which

(1)  either, if the individual is resident in Canada throughout the year, the aggregate of the individual’s income for the year and of all amounts each of which is an amount included in computing the individual’s taxable income for the year under any of sections 726.43 to 726.43.2 and, if the individual is not resident in Canada at any time in the year, the amount determined for the year in respect of the individual under the third paragraph of section 23, exceeds

(2)  the aggregate of all amounts each of which is an amount deductible under any of sections 725, 725.2 to 725.5, 726.26, 726.28, 737.16, 737.18.10, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7, 737.22.0.10, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9, 726.20.2, 726.42 and 729, in computing the individual’s taxable income for the year; and

(b)  the proportion of the aggregate of the levies referred to in the first paragraph paid by the individual to the organization in respect of the year that

i.  the individual’s income for the year from employment with the international organization, except the portion of that income that is deductible under section 725 in computing the individual’s taxable income for the year, is of

ii.  the amount that would be the individual’s income for the year from employment with that organization but for section 488.

1995, c. 63, s. 82; 1997, c. 14, s. 132; 1997, c. 85, s. 170; 1999, c. 83, s. 110; 1999, c. 86, s. 99; 2000, c. 39, s. 264; 2002, c. 40, s. 79; 2003, c. 2, s. 235; 2003, c. 9, s. 105; 2004, c. 8, s. 151; 2004, c. 21, s. 210; 2006, c. 36, s. 80; 2010, c. 25, s. 83; 2013, c. 10, s. 60; 2017, c. 29, s. 160; 2019, c.14, s. 256; 2021, c. 14, s. 95; 2022, c. 23, s. 69.

2021-06-02

772.11. An individual who is an employee of an international organization within the meaning of section 2 of the Foreign Missions and International Organizations Act (S.C. 1991, c. 41) may, if the individual is resident in Québec on the last day of a taxation year, deduct from the individual’s tax otherwise payable under this Part for the year the amount by which the aggregate of all amounts each of which is an amount paid by the individual to the organization as a levy to defray expenses of the organization, computed by reference to the remuneration received by the individual in the year from the organization in a manner similar to the manner in which income tax is computed, exceeds the aggregate of

(a)  the deduction granted to the individual in respect of the levies for the year under subsection 3 of section 126 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.));

(b)  (subparagraph repealed);

(c)  where the individual is required under section 127.5 of the Income Tax Act to pay tax for the year, an amount in respect of the levies is computed under subsection 2 of section 127.54 of that Act, for the purpose of determining the tax, and the amount so computed is equal

i.  to the amount referred to in paragraph a of that subsection 2, the amount that would be referred to in that paragraph if the reference therein to section 126 of that Act were replaced by a reference to subsection 3 of that section 126, or

ii.  to the amount referred to in paragraph b of that subsection 2, such portion of the amount referred to in that paragraph as may reasonably be regarded as attributable to income referred to in paragraph a of subsection 3 of section 126 of that Act.

However, the deduction provided for in the first paragraph in respect of an individual for a taxation year in respect of employment with an international organization shall not exceed the lesser of

(a)  the proportion of the individual’s tax otherwise payable under this Part for the year that

i.  the individual’s income for the year or, if the individual’s taxable income is computed in the manner prescribed in section 23, for the part of the year throughout which the individual was resident in Canada, from employment with that organization, except the portion of that income that is deductible under section 725 in computing the individual’s taxable income for the year, is of

ii.  the amount by which

(1)  either, if the individual is resident in Canada throughout the year, the aggregate of the individual’s income for the year and of all amounts each of which is an amount included in computing the individual’s taxable income for the year under any of sections 726.43 to 726.43.2 and, if the individual is not resident in Canada at any time in the year, the amount determined for the year in respect of the individual under the third paragraph of section 23, exceeds

(2)  the aggregate of all amounts each of which is an amount deductible under any of sections 725, 725.2 to 725.5, 726.26, 726.28, 737.14, 737.16, 737.16.1, 737.18.10, 737.18.34, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7, 737.22.0.10, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9, 726.20.2, 726.42 and 729, in computing the individual’s taxable income for the year; and

(b)  the proportion of the aggregate of the levies referred to in the first paragraph paid by the individual to the organization in respect of the year that

i.  the individual’s income for the year from employment with the international organization, except the portion of that income that is deductible under section 725 in computing the individual’s taxable income for the year, is of

ii.  the amount that would be the individual’s income for the year from employment with that organization but for section 488.

1995, c. 63, s. 82; 1997, c. 14, s. 132; 1997, c. 85, s. 170; 1999, c. 83, s. 110; 1999, c. 86, s. 99; 2000, c. 39, s. 264; 2002, c. 40, s. 79; 2003, c. 2, s. 235; 2003, c. 9, s. 105; 2004, c. 8, s. 151; 2004, c. 21, s. 210; 2006, c. 36, s. 80; 2010, c. 25, s. 83; 2013, c. 10, s. 60; 2017, c. 29, s. 160; 2019, c.14, s. 256; 2021, c. 14, s. 95.

2019-06-19

772.11. An individual who is an employee of an international organization within the meaning of section 2 of the Foreign Missions and International Organizations Act (S.C. 1991, c. 41) may, if the individual is resident in Québec on the last day of a taxation year, deduct from the individual’s tax otherwise payable under this Part for the year the amount by which the aggregate of all amounts each of which is an amount paid by the individual to the organization as a levy to defray expenses of the organization, computed by reference to the remuneration received by the individual in the year from the organization in a manner similar to the manner in which income tax is computed, exceeds the aggregate of

(a)  the deduction granted to the individual in respect of the levies for the year under subsection 3 of section 126 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.));

(b)  (subparagraph repealed);

(c)  where the individual is required under section 127.5 of the Income Tax Act to pay tax for the year, an amount in respect of the levies is computed under subsection 2 of section 127.54 of that Act, for the purpose of determining the tax, and the amount so computed is equal

i.  to the amount referred to in paragraph a of that subsection 2, the amount that would be referred to in that paragraph if the reference therein to section 126 of that Act were replaced by a reference to subsection 3 of that section 126, or

ii.  to the amount referred to in paragraph b of that subsection 2, such portion of the amount referred to in that paragraph as may reasonably be regarded as attributable to income referred to in paragraph a of subsection 3 of section 126 of that Act.

However, the deduction provided for in the first paragraph in respect of an individual for a taxation year in respect of employment with an international organization shall not exceed the lesser of

(a)  the proportion of the individual’s tax otherwise payable under this Part for the year that

i.  the individual’s income for the year or, if the individual’s taxable income is computed in the manner prescribed in section 23, for the part of the year throughout which the individual was resident in Canada, from employment with that organization, except the portion of that income that is deductible under section 725 in computing the individual’s taxable income for the year, is of

ii.  the amount by which

(1)  either, if the individual is resident in Canada throughout the year, the aggregate of the individual’s income for the year and of all amounts each of which is an amount included in computing the individual’s taxable income for the year under section 726.35, 726.43 or 737.17, or, if the individual is not resident in Canada at any time in the year, the amount determined for the year in respect of the individual under the third paragraph of section 23, exceeds

(2)  the aggregate of all amounts each of which is an amount deductible under any of sections 725, 725.2 to 725.5, 726.26, 726.28, 737.14, 737.16, 737.16.1, 737.18.10, 737.18.34, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7, 737.22.0.10, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9, 726.20.2, 726.33, 726.42 and 729, in computing the individual’s taxable income for the year; and

(b)  the proportion of the aggregate of the levies referred to in the first paragraph paid by the individual to the organization in respect of the year that

i.  the individual’s income for the year from employment with the international organization, except the portion of that income that is deductible under section 725 in computing the individual’s taxable income for the year, is of

ii.  the amount that would be the individual’s income for the year from employment with that organization but for section 488.

1995, c. 63, s. 82; 1997, c. 14, s. 132; 1997, c. 85, s. 170; 1999, c. 83, s. 110; 1999, c. 86, s. 99; 2000, c. 39, s. 264; 2002, c. 40, s. 79; 2003, c. 2, s. 235; 2003, c. 9, s. 105; 2004, c. 8, s. 151; 2004, c. 21, s. 210; 2006, c. 36, s. 80; 2010, c. 25, s. 83; 2013, c. 10, s. 60; 2017, c. 29, s. 160; 2019, c.14, s. 256.

2017-12-07

772.11. An individual who is an employee of an international organization within the meaning of section 2 of the Foreign Missions and International Organizations Act (S.C. 1991, c. 41) may, if the individual is resident in Québec on the last day of a taxation year, deduct from the individual’s tax otherwise payable under this Part for the year the amount by which the aggregate of all amounts each of which is an amount paid by the individual to the organization as a levy to defray expenses of the organization, computed by reference to the remuneration received by the individual in the year from the organization in a manner similar to the manner in which income tax is computed, exceeds the aggregate of

(a)  the deduction granted to the individual in respect of the levies for the year under subsection 3 of section 126 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.));

(b)  (subparagraph repealed);

(c)  where the individual is required under section 127.5 of the Income Tax Act to pay tax for the year, an amount in respect of the levies is computed under subsection 2 of section 127.54 of that Act, for the purpose of determining the tax, and the amount so computed is equal

i.  to the amount referred to in paragraph a of that subsection 2, the amount that would be referred to in that paragraph if the reference therein to section 126 of that Act were replaced by a reference to subsection 3 of that section 126, or

ii.  to the amount referred to in paragraph b of that subsection 2, such portion of the amount referred to in that paragraph as may reasonably be regarded as attributable to income referred to in paragraph a of subsection 3 of section 126 of that Act.

However, the deduction provided for in the first paragraph in respect of an individual for a taxation year in respect of employment with an international organization shall not exceed the lesser of

(a)  the proportion of the individual’s tax otherwise payable under this Part for the year that

i.  the individual’s income for the year or, if the individual’s taxable income is computed in the manner prescribed in section 23, for the part of the year throughout which the individual was resident in Canada, from employment with that organization, except the portion of that income that is deductible under section 725 in computing the individual’s taxable income for the year, is of

ii.  the amount by which

(1)  either, if the individual is resident in Canada throughout the year, the aggregate of the individual’s income for the year and of all amounts each of which is an amount included in computing the individual’s taxable income for the year under section 726.35, 726.43 or 737.17, or, if the individual is not resident in Canada at any time in the year, the amount determined for the year in respect of the individual under the third paragraph of section 23, exceeds

(2)  the aggregate of all amounts each of which is an amount deductible under any of sections 725, 725.2 to 725.6, 726.26, 726.28, 737.14, 737.16, 737.16.1, 737.18.10, 737.18.34, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7, 737.22.0.10, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9, 726.20.2, 726.33, 726.42 and 729, in computing the individual’s taxable income for the year; and

(b)  the proportion of the aggregate of the levies referred to in the first paragraph paid by the individual to the organization in respect of the year that

i.  the individual’s income for the year from employment with the international organization, except the portion of that income that is deductible under section 725 in computing the individual’s taxable income for the year, is of

ii.  the amount that would be the individual’s income for the year from employment with that organization but for section 488.

1995, c. 63, s. 82; 1997, c. 14, s. 132; 1997, c. 85, s. 170; 1999, c. 83, s. 110; 1999, c. 86, s. 99; 2000, c. 39, s. 264; 2002, c. 40, s. 79; 2003, c. 2, s. 235; 2003, c. 9, s. 105; 2004, c. 8, s. 151; 2004, c. 21, s. 210; 2006, c. 36, s. 80; 2010, c. 25, s. 83; 2013, c. 10, s. 60; 2017, c. 29, s. 160.

2013-06-05

772.11. An individual who is an employee of an international organization within the meaning of section 2 of the Foreign Missions and International Organizations Act (S.C. 1991, c. 41) may, if the individual is resident in Québec on the last day of a taxation year, deduct from the individual’s tax otherwise payable under this Part for the year the amount by which the aggregate of all amounts each of which is an amount paid by the individual to the organization as a levy to defray expenses of the organization, computed by reference to the remuneration received by the individual in the year from the organization in a manner similar to the manner in which income tax is computed, exceeds the aggregate of

(a)  the deduction granted to the individual in respect of the levies for the year under subsection 3 of section 126 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.));

(b)  (subparagraph repealed);

(c)  where the individual is required under section 127.5 of the Income Tax Act to pay tax for the year, an amount in respect of the levies is computed under subsection 2 of section 127.54 of that Act, for the purpose of determining the tax, and the amount so computed is equal

i.  to the amount referred to in paragraph a of that subsection 2, the amount that would be referred to in that paragraph if the reference therein to section 126 of that Act were replaced by a reference to subsection 3 of that section 126, or

ii.  to the amount referred to in paragraph b of that subsection 2, such portion of the amount referred to in that paragraph as may reasonably be regarded as attributable to income referred to in paragraph a of subsection 3 of section 126 of that Act.

However, the deduction provided for in the first paragraph in respect of an individual for a taxation year in respect of employment with an international organization shall not exceed the lesser of

(a)  the proportion of the individual’s tax otherwise payable under this Part for the year that

i.  the individual’s income for the year or, if the individual’s taxable income is computed in the manner prescribed in section 23, for the part of the year throughout which the individual was resident in Canada, from employment with that organization, except the portion of that income that is deductible under section 725 in computing the individual’s taxable income for the year, is of

ii.  the amount by which

(1)  either, if the individual is resident in Canada throughout the year, the aggregate of the individual’s income for the year and of all amounts each of which is an amount included in computing the individual’s taxable income for the year under section 726.35 or 737.17, or, if the individual is not resident in Canada at any time in the year, the amount determined for the year in respect of the individual under the third paragraph of section 23, exceeds

(2)  the aggregate of all amounts each of which is an amount deductible under any of sections 725, 725.2 to 725.6, 726.26, 726.28, 737.14, 737.16, 737.16.1, 737.18.10, 737.18.34, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7, 737.22.0.10, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9, 726.20.2, 726.33 and 729, in computing the individual’s taxable income for the year; and

(b)  the proportion of the aggregate of the levies referred to in the first paragraph paid by the individual to the organization in respect of the year that

i.  the individual’s income for the year from employment with the international organization, except the portion of that income that is deductible under section 725 in computing the individual’s taxable income for the year, is of

ii.  the amount that would be the individual’s income for the year from employment with that organization but for section 488.

1995, c. 63, s. 82; 1997, c. 14, s. 132; 1997, c. 85, s. 170; 1999, c. 83, s. 110; 1999, c. 86, s. 99; 2000, c. 39, s. 264; 2002, c. 40, s. 79; 2003, c. 2, s. 235; 2003, c. 9, s. 105; 2004, c. 8, s. 151; 2004, c. 21, s. 210; 2006, c. 36, s. 80; 2010, c. 25, s. 83; 2013, c. 10, s. 60.

2010-10-27

772.11. An individual who is an employee of an international organization within the meaning of section 2 of the Foreign Missions and International Organizations Act (Statutes of Canada, 1991, chapter 41) may, if the individual is resident in Québec on the last day of a taxation year, deduct from the individual’s tax otherwise payable under this Part for the year the amount by which the aggregate of all amounts each of which is an amount paid by the individual to the organization as a levy to defray expenses of the organization, computed by reference to the remuneration received by the individual in the year from the organization in a manner similar to the manner in which income tax is computed, exceeds the aggregate of

(a)  the deduction granted to the individual in respect of the levies for the year under subsection 3 of section 126 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement);

(b)  (subparagraph repealed);

(c)  where the individual is required under section 127.5 of the Income Tax Act to pay tax for the year, an amount in respect of the levies is computed under subsection 2 of section 127.54 of that Act, for the purpose of determining the tax, and the amount so computed is equal

i.  to the amount referred to in paragraph a of that subsection 2, the amount that would be referred to in that paragraph if the reference therein to section 126 of that Act were replaced by a reference to subsection 3 of that section 126, or

ii.  to the amount referred to in paragraph b of that subsection 2, such portion of the amount referred to in that paragraph as may reasonably be regarded as attributable to income referred to in paragraph a of subsection 3 of section 126 of that Act.

However, the deduction provided for in the first paragraph in respect of an individual for a taxation year in respect of employment with an international organization shall not exceed the lesser of

(a)  the proportion of the individual’s tax otherwise payable under this Part for the year that

i.  the individual’s income for the year or, if the individual’s taxable income is computed in the manner prescribed in section 23, for the part of the year throughout which the individual was resident in Canada, from employment with that organization, except the portion of that income that is deductible under section 725 in computing the individual’s taxable income for the year, is of

ii.  the amount by which

(1)  either, if the individual is resident in Canada throughout the year, the aggregate of the individual’s income for the year and of all amounts each of which is an amount included in computing the individual’s taxable income for the year under section 726.35 or 737.17, or, if the individual is not resident in Canada at any time in the year, the amount determined for the year in respect of the individual under the third paragraph of section 23, exceeds

(2)  the aggregate of all amounts each of which is an amount deductible under any of sections 725, 725.2 to 725.6, 726.26, 726.28, 737.14, 737.16, 737.16.1, 737.18.10, 737.18.34, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.7, 737.22.0.10, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9, 726.20.2, 726.33 and 729, in computing the individual’s taxable income for the year; and

(b)  the proportion of the aggregate of the levies referred to in the first paragraph paid by the individual to the organization in respect of the year that

i.  the individual’s income for the year from employment with the international organization, except the portion of that income that is deductible under section 725 in computing the individual’s taxable income for the year, is of

ii.  the amount that would be the individual’s income for the year from employment with that organization but for section 488.

1995, c. 63, s. 82; 1997, c. 14, s. 132; 1997, c. 85, s. 170; 1999, c. 83, s. 110; 1999, c. 86, s. 99; 2000, c. 39, s. 264; 2002, c. 40, s. 79; 2003, c. 2, s. 235; 2003, c. 9, s. 105; 2004, c. 8, s. 151; 2004, c. 21, s. 210; 2006, c. 36, s. 80; 2010, c. 25, s. 83.

2006-12-06

772.11. An individual who is an employee of an international organization within the meaning of section 2 of the Foreign Missions and International Organizations Act (Statutes of Canada, 1991, chapter 41) may, if the individual is resident in Québec on the last day of a taxation year, deduct from the individual’s tax otherwise payable under this Part for the year the amount by which the aggregate of all amounts each of which is an amount paid by the individual to the organization as a levy to defray expenses of the organization, computed by reference to the remuneration received by the individual in the year from the organization in a manner similar to the manner in which income tax is computed, exceeds the aggregate of

(a)  the deduction granted to the individual in respect of the levies for the year under subsection 3 of section 126 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement);

(b)  (subparagraph repealed);

(c)  where the individual is required under section 127.5 of the Income Tax Act to pay tax for the year, an amount in respect of the levies is computed under subsection 2 of section 127.54 of that Act, for the purpose of determining the tax, and the amount so computed is equal

i.  to the amount referred to in paragraph a of that subsection 2, the amount that would be referred to in that paragraph if the reference therein to section 126 of that Act were replaced by a reference to subsection 3 of that section 126, or

ii.  to the amount referred to in paragraph b of that subsection 2, such portion of the amount referred to in that paragraph as may reasonably be regarded as attributable to income referred to in paragraph a of subsection 3 of section 126 of that Act.

However, the deduction provided for in the first paragraph in respect of an individual for a taxation year in respect of employment with an international organization shall not exceed the lesser of

(a)  the proportion of the individual’s tax otherwise payable under this Part for the year that

i.  the individual’s income for the year or, if the individual’s taxable income is computed in the manner prescribed in section 23, for the part of the year throughout which the individual was resident in Canada, from employment with that organization, except the portion of that income that is deductible under section 725 in computing the individual’s taxable income for the year, is of

ii.  the amount by which

(1)  either, if the individual is resident in Canada throughout the year, the aggregate of the individual’s income for the year and of all amounts each of which is an amount included in computing the individual’s taxable income for the year under section 726.35 or 737.17, or, if the individual is not resident in Canada at any time in the year, the amount determined for the year in respect of the individual under the third paragraph of section 23, exceeds

(2)  the aggregate of all amounts each of which is an amount deductible under any of sections 725, 725.2 to 725.6, 726.26, 726.28, 737.14, 737.16, 737.16.1, 737.18.10, 737.18.28, 737.18.34, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.7, 737.22.0.10, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9, 726.20.2, 726.33 and 729, in computing the individual’s taxable income for the year; and

(b)  the proportion of the aggregate of the levies referred to in the first paragraph paid by the individual to the organization in respect of the year that

i.  the individual’s income for the year from employment with the international organization, except the portion of that income that is deductible under section 725 in computing the individual’s taxable income for the year, is of

ii.  the amount that would be the individual’s income for the year from employment with that organization but for section 488.

1995, c. 63, s. 82; 1997, c. 14, s. 132; 1997, c. 85, s. 170; 1999, c. 83, s. 110; 1999, c. 86, s. 99; 2000, c. 39, s. 264; 2002, c. 40, s. 79; 2003, c. 2, s. 235; 2003, c. 9, s. 105; 2004, c. 8, s. 151; 2004, c. 21, s. 210; 2006, c. 36, s. 80.

2006-03-01

772.11. An individual who is an employee of an international organization within the meaning of section 2 of the Foreign Missions and International Organizations Act (Statutes of Canada, 1991, chapter 41) may, if the individual is resident in Québec on the last day of a taxation year, deduct from the individual’s tax otherwise payable under this Part for the year the amount by which the aggregate of all amounts each of which is an amount paid by the individual to the organization as a levy to defray expenses of the organization, computed by reference to the remuneration received by the individual in the year from the organization in a manner similar to the manner in which income tax is computed, exceeds the aggregate of

(a)  the deduction granted to the individual in respect of the levies for the year under subsection 3 of section 126 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement);

(b)  (subparagraph repealed);

(c)  where the individual is required under section 127.5 of the Income Tax Act to pay tax for the year, an amount in respect of the levies is computed under subsection 2 of section 127.54 of that Act, for the purpose of determining the tax, and the amount so computed is equal

i.  to the amount referred to in paragraph a of that subsection 2, the amount that would be referred to in that paragraph if the reference therein to section 126 of that Act were replaced by a reference to subsection 3 of that section 126, or

ii.  to the amount referred to in paragraph b of that subsection 2, such portion of the amount referred to in that paragraph as may reasonably be regarded as attributable to income referred to in paragraph a of subsection 3 of section 126 of that Act.

However, the deduction provided for in the first paragraph in respect of an individual for a taxation year in respect of employment with an international organization shall not exceed the lesser of

(a)  the proportion of the individual’s tax otherwise payable under this Part for the year that

i.  the individual’s income for the year or, if the individual’s taxable income is computed in the manner prescribed in section 23, for the part of the year throughout which the individual was resident in Canada, from employment with that organization, except the portion of that income that is deductible under section 725 in computing the individual’s taxable income for the year, is of

ii.  the amount by which

(1)  either, where the individual is resident in Canada throughout the year, the aggregate of the individual’s income for the year and the amount included in computing the individual’s taxable income for the year under section 737.17 or, where the individual is not resident in Canada at any time in the year, the amount determined for the year in respect of the individual under the third paragraph of section 23, exceeds

(2)  the aggregate of all amounts each of which is an amount deductible under any of sections 725, 725.2 to 725.6, 726.26, 726.28, 737.14, 737.16, 737.16.1, 737.18.10, 737.18.28, 737.18.34, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.7, 737.22.0.10, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9, 726.20.2 and 729, in computing the individual’s taxable income for the year; and

(b)  the proportion of the aggregate of the levies referred to in the first paragraph paid by the individual to the organization in respect of the year that

i.  the individual’s income for the year from employment with the international organization, except the portion of that income that is deductible under section 725 in computing the individual’s taxable income for the year, is of

ii.  the amount that would be the individual’s income for the year from employment with that organization but for section 488.

1995, c. 63, s. 82; 1997, c. 14, s. 132; 1997, c. 85, s. 170; 1999, c. 83, s. 110; 1999, c. 86, s. 99; 2000, c. 39, s. 264; 2002, c. 40, s. 79; 2003, c. 2, s. 235; 2003, c. 9, s. 105; 2004, c. 8, s. 151; 2004, c. 21, s. 210.