I-3 - Taxation Act

Section 803.1 Disposition versions

2009-05-15

803.1. If a credit union makes, in relation to a taxation year, a valid election under subsection 5.1 of section 137 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) after 19 December 2006 to allocate an amount to another credit union that is one of its members, the credit union is deemed to have allocated to the other credit union in respect of the year such portion of each of the following amounts as may reasonably be considered to be the other credit union’s share:

(a)  the lesser of the aggregate of the amounts described in paragraph a of that subsection 5.1 in relation to the year and the aggregate of all amounts each of which is a taxable dividend received by the credit union from a taxable Canadian corporation in the year;

(b)  the lesser of the excess amount determined under paragraph b of that subsection 5.1 in relation to the year and the amount by which the aggregate of all amounts each of which is the amount by which the credit union’s capital gain from the disposition of a property in the year exceeds its taxable capital gain from the disposition, exceeds the aggregate of all amounts each of which is the amount by which the credit union’s capital loss from the disposition of a property in the year exceeds its allowable capital loss from the disposition; and

(c)  the lesser of the aggregate of the amounts described in paragraph c of that subsection 5.1 in relation to the year and the aggregate of the amounts deductible under paragraph c of section 803.2 in computing the credit union’s taxable income for the year.

Chapter V.2 of Title II of Book I applies in relation to an election made under subsection 5.1 of section 137 of the Income Tax Act or in relation to an election made under this section before 20 December 2006.

1982, c. 5, s. 149; 1993, c. 16, s. 296; 1997, c. 3, s. 71; 2009, c. 5, s. 344.

2006-03-01

803.1. A credit union may, within 120 days after the end of its taxation year, elect in prescribed form to allocate in respect of the year to a member that is a credit union such portion of each of the following amounts as may be regarded as attributable to the member:

(a)  the aggregate of all amounts each of which is the amount of a taxable dividend received by the credit union from a taxable Canadian corporation in the year;

(b)  the amount by which the aggregate of all amounts each of which is the amount by which the credit union’s capital gain from the disposition of a property in the year exceeds its taxable capital gain from the disposition of that property, exceeds the aggregate of all amounts each of which is the amount by which the credit union’s capital loss from the disposition of a property in the year exceeds its allowable capital loss from the disposition of that property; and

(c)  each amount deductible under paragraph c of section 803.2 in computing the credit union’s taxable income for the year.

1982, c. 5, s. 149; 1993, c. 16, s. 296; 1997, c. 3, s. 71.