I-3 - Taxation Act

Section 1138.1 Disposition versions

2009-05-15

1138.1. Every farming corporation or every corporation whose activities consist mainly in carrying on a fishing business may deduct $5,000,000 in computing its paid-up capital, following the application of section 1138.

However, if the corporation is associated in a taxation year with one or several other corporations referred to in the first paragraph, the amount it may deduct for the year under this section is equal to the product obtained by multiplying $5,000,000 by

(a)  if all the corporations associated with each other during the year have filed with the Minister an agreement in the prescribed form whereby they attribute a deduction percentage to one or more of them for the year for the purposes of this section, and the deduction percentage or the total of deduction percentages so attributed, as the case may be, does not exceed 100%, the deduction percentage so attributed to the corporation for the year or, in the absence of such an attribution in its respect, zero; and

(b)  in any other case, zero.

Where two corporations are deemed, under section 21.21, to be associated with each other at any time by reason that they are associated, or deemed to be associated under that section, at that time with the same corporation, in this paragraph referred to as the “third corporation”, the following rules apply if the third corporation so elects in prescribed form for its taxation year that includes that time:

(a)  for the purpose of determining whether, for the purposes of this section, the two corporations are deemed to be associated with each other under section 21.21, the third corporation is deemed not to be associated with either of those two corporations in that taxation year; and

(b)  the amount that the third corporation may deduct for that taxation year under this section is nil.

1986, c. 15, s. 203; 1987, c. 21, s. 92; 1989, c. 5, s. 238; 1995, c. 63, s. 245; 1997, c. 3, s. 71; 2003, c. 9, s. 427; 2009, c. 5, s. 559.

2006-03-01

1138.1. Every farming corporation or every corporation whose activities consist mainly in carrying on a fishing business may, where it is not contemplated in section 1138.0.1, deduct $400,000 in computing its paid-up capital, following the application of section 1138.

However, where the corporation is associated in a taxation year with one or several other corporations referred to in the first paragraph, the amount it may deduct for the year under this section is nil unless all the corporations associated with each other during the year have filed with the Minister an agreement in prescribed form whereby they attribute an amount to one or more of them for the year for the purposes of this section, and the amount or the total of the amounts attributed, as the case may be, does not exceed $400,000, in which case the amount that any of the corporations may deduct for the year under this section is the amount so attributed to it.

Where two corporations are deemed, under section 21.21, to be associated with each other at any time by reason that they are associated, or deemed to be associated under that section, at that time with the same corporation, in this paragraph referred to as the “third corporation”, the following rules apply if the third corporation so elects in prescribed form for its taxation year that includes that time:

(a)  for the purpose of determining whether, for the purposes of this section, the two corporations are deemed to be associated with each other under section 21.21, the third corporation is deemed not to be associated with either of those two corporations in that taxation year; and

(b)  the amount that the third corporation may deduct for that taxation year under this section is nil.

1986, c. 15, s. 203; 1987, c. 21, s. 92; 1989, c. 5, s. 238; 1995, c. 63, s. 245; 1997, c. 3, s. 71; 2003, c. 9, s. 427.