I-3 - Taxation Act

Section 772.9.1 Disposition versions

2006-03-01

772.9.1. For the purposes of subparagraph a of the first paragraph of section 772.7, the second paragraph of that section and subparagraph i of paragraph a of section 772.9, the incomes and losses for a taxation year of a taxpayer from sources in a foreign country shall also be computed as if, where applicable, the aggregate of all amounts each of which is that portion of an amount deducted in computing those incomes or losses for the year under any of sections 371, 418.1.10, 418.17 and 418.17.3 that is attributable to those sources were the greater of

(a)  the aggregate of all amounts each of which is that portion of an amount deducted in computing the taxpayer’s income for the year under any of sections 371, 418.1.10, 418.17 and 418.17.3 that is attributable to those sources; and

(b)  the aggregate of

i.  the portion of the maximum amount that would be deductible by the taxpayer in computing the taxpayer’s income for the year under section 371 that is attributable to those sources if the amount determined under paragraph b of section 374 for the taxpayer in respect of the year were equal to the amount by which the amount determined under the second paragraph exceeds the aggregate of all amounts each of which is the portion of an amount, other than a portion that results in a reduction of the amount otherwise determined under subparagraph a of the second paragraph, that is attributable to those sources and that would be deducted under section 418.17 in computing the taxpayer’s income for the year if the maximum amounts deductible for the year under section 418.17 were deducted,

ii.  the maximum amount that would be deductible by the taxpayer in computing the taxpayer’s income for the year under section 418.1.10 in relation to those sources if

(1)  the amount deducted in computing the taxpayer’s income for the year under section 371 in relation to those sources were the amount determined under subparagraph i,

(2)  the amounts deducted in computing the taxpayer’s income for the year under sections 418.17 and 418.17.3 in relation to those sources were the maximum amounts deductible under those sections,

(3)  for the purposes of sections 418.1.3 to 418.1.5, the total of the amounts designated for the year under subparagraph ii of paragraph a of section 330 in respect of a disposition in the year by the taxpayer of foreign resource properties in relation to the foreign country were the maximum total that could be so designated without any reduction in the maximum amount that would be determined for the year under subparagraph i in respect of the taxpayer and the foreign country if subparagraph b of the second paragraph were read without reference to the assumption made therein in relation to designations made under subparagraph ii of paragraph a of section 330, and

(4)  the amount determined under paragraph b of section 418.1.10 were nil; and

iii.  the aggregate of all amounts each of which is the maximum amount attributable to one of those sources that the taxpayer may deduct in computing the taxpayer’s income for the year under section 418.17 or 418.17.3.

The amount that, for the purposes of subparagraph i of subparagraph b of the first paragraph, must be determined under this paragraph is the aggregate of

(a)  the taxpayer’s foreign resource income, within the meaning assigned by section 418.1.7, for the year in relation to the foreign country, determined as if the taxpayer had deducted the maximum amounts deductible for the year under sections 418.17 and 418.17.3; and

(b)  the aggregate of all amounts each of which is an amount that, but for any designation under subparagraph ii of paragraph a of section 330, would have been included in computing the taxpayer’s income for the year under that paragraph a in respect of a disposition of foreign resource property in relation to the foreign country.

2004, c. 8, s. 150.