I-3 - Taxation Act

Section 1141.2.1 Disposition versions

2006-03-01

1141.2.1. Every corporation contemplated in section 1140, 1141 or 1141.1 may, in computing its paid-up capital for a taxation year, deduct the aggregate of the following amounts:

(a)  the amount of its future tax assets;

(b)  the amount determined for the year in respect of the corporation according to the formula

A × C / B.

For the purposes of the formula in subparagraph b of the first paragraph:

(a)  A is the total of all amounts each of which is the value, at the end of the taxation year, of the asset of the corporation that is

i.  a share of the capital stock or the long-term debt of another corporation referred to in this Title to which the corporation is related, or

ii.  a subordinated loan or another debt, whose repayment is subject to the prior approval of an agency empowered to regulate trading in securities, of another corporation that is a corporation trading in securities to which the corporation is related;

(b)  B is the ratio between the business carried on in Québec by the corporation in the year and the total business carried on by the corporation in Québec and elsewhere in the year;

(c)  C is the ratio between the business carried on in Québec by the other corporation in its taxation year ending in the year of the corporation and the total business carried on in Québec and elsewhere by the other corporation in that taxation year.

In the second paragraph, the ratio between the business carried on in Québec and the total business carried on in Québec and elsewhere in respect of a corporation means the ratio determined by regulation made under subsection 2 of section 771.

1990, c. 7, s. 214; 1995, c. 63, s. 251; 1997, c. 3, s. 71; 1997, c. 14, s. 279; 2000, c. 39, s. 258; 2002, c. 40, s. 320; 2003, c. 9, s. 430.