I-3 - Taxation Act

Section 772.13 Disposition versions

2006-03-01

772.13. For the purposes of section 772.12,

(a)  no amount is deductible under that section in computing a corporation’s tax payable under this Part for a particular taxation year in respect of the corporation’s unused portion of the foreign tax credit for a determined taxation year, until the corporation’s unused portions of the foreign tax credit for taxation years previous to the determined year that are deductible for the particular year have been deducted;

(b)  a corporation’s unused portion of the foreign tax credit for a taxation year is deductible under that section in computing the corporation’s tax payable under this Part for a particular taxation year only to the extent that it exceeds the aggregate of the amounts deducted in respect of the unused portion of the foreign tax credit in computing the corporation’s tax payable under this Part for the taxation years previous to the particular year;

(c)  notwithstanding the first paragraph of section 549, a new corporation’s unused portion of the foreign tax credit resulting from an amalgamation, within the meaning of section 544, for a taxation year ending after the amalgamation is not deductible, under section 772.12 in computing the tax payable under this Part for a taxation year by a predecessor corporation by virtue of that amalgamation, other than a corporation that, where the new corporation is a corporation having resulted from the amalgamation, after 31 December 1989, of a particular corporation and one or more of its subsidiary wholly-owned corporations, within the meaning of subsection 5 of section 544, is the particular corporation;

(d)  in the case of a winding-up referred to in section 556, the unused portion of the foreign tax credit of the subsidiary, within the meaning of that section, for a particular taxation year, to the extent that it has not previously been deducted in computing the subsidiary’s tax payable under this Part for a taxation year and if subparagraph i of subparagraph f has never been applied in respect of the subsidiary, is deemed, for the computation of the deduction provided for in section 772.12 for the taxation year of the parent, within the meaning of section 556, commencing after the beginning of the winding-up, to be an unused portion of the parent’s foreign tax credit for its taxation year in which the particular taxation year ended, and section 564.5 applies, with the necessary modifications, for the purposes of this subparagraph;

(e)  section 564.4.4 applies, with the necessary modifications, in the case provided for in subparagraph d;

(f)  where, at any time, the control of a corporation is acquired by a person or group of persons,

i.  no amount in respect of the corporation’s unused portion of the foreign tax credit for a taxation year ending before that time is deductible in computing the corporation’s tax payable under this Part for a taxation year ending after that time, and

ii.  no amount in respect of the corporation’s unused portion of the foreign tax credit for a taxation year ending after that time is deductible in computing the corporation’s tax payable under this Part for a taxation year ending before that time.

1995, c. 63, s. 82; 1997, c. 3, s. 71; 2000, c. 5, s. 172.