I-3 - Taxation Act

Section 1138.2.6 Disposition versions

2009-06-04

1138.2.6. A manufacturing corporation for a taxation year may deduct from its paid-up capital otherwise determined for the year under this Title, an amount equal to

(a)  if the proportion of the manufacturing or processing activities of the corporation for the year is at least 50%, the corporation’s paid-up capital for the year, determined before the application of this section; and

(b)  if the proportion of the manufacturing or processing activities of the corporation for the year is less than 50%, the amount determined by the formula

A × (B - 20%)/30%.

In the formula in subparagraph b of the first paragraph,

(a)  A is the corporation’s paid-up capital for the year, determined before the application of this section; and

(b)  B is the proportion of the manufacturing or processing activities of the corporation for the year.

Any amount otherwise deductible in computing the corporation’s paid-up capital for the year under this Title, after the application of section 1138, is to be determined without reference to this section.

2009, c. 15, s. 440.