I-3 - Taxation Act

Section 175.6.1 Disposition versions

2012-05-09

175.6.1. The aggregate of all amounts that a taxpayer may deduct in computing income from a business or property for a taxation year, each of which is an amount to which section 421.1 applies for the year, shall not exceed

(a)  in respect of a business of the taxpayer that consists in acting as an intermediary in selling property included in the inventory of another taxpayer,

i.  if the taxpayer’s deemed gross revenue for the year from the business referred to in this subparagraph does not exceed $32,500, the amount determined by the formula

[2% × (A/B)] + [2% × (C − A)],

ii.  if the taxpayer’s deemed gross revenue for the year from the business referred to in this subparagraph exceeds $32,500 but does not exceed $51,999, $650, and

iii.  if the taxpayer’s deemed gross revenue for the year from the business referred to in this subparagraph exceeds $51,999, the amount determined by the formula

[1.25% × (A/B)] + [1.25% × (C − A)];

(b)  in any other case,

i.  if the taxpayer’s gross revenue for the year from the business or property does not exceed $32,500, an amount equal to 2% of that gross revenue,

ii.  if the taxpayer’s gross revenue for the year from the business or property exceeds $32,500 but does not exceed $51,999, $650, and

iii.   if the taxpayer’s gross revenue for the year from the business or property exceeds $51,999, an amount equal to 1.25% of that gross revenue.

For the purposes of subparagraphs i to iii of subparagraph a of the first paragraph, the taxpayer’s deemed gross revenue for the year from the business referred to in that subparagraph a is the amount determined by the formula

(A/B) + (C - A).

In the formulas in subparagraphs i and iii of subparagraph a of the first paragraph and in the second paragraph,

(a)  A is the aggregate of all amounts each of which is the amount of a commission that the taxpayer included in computing income for the year from the business referred to in that subparagraph a;

(b)  B is the average percentage of the aggregate of all the commissions in respect of which the taxpayer included the amount in computing income for the year from the business referred to in that subparagraph a; and

(c)  C is the taxpayer’s gross revenue for the year from the business referred to in that subparagraph a.

If the number of days in the taxation year of the taxpayer is less than 365, the following rules apply:

(a)  for the purposes of subparagraphs a and b of the first paragraph, the taxpayer’s deemed gross revenue or gross revenue for the year from a business or property is deemed to be equal to the amount obtained by multiplying that revenue by the proportion that 365 is of the number of days in the year; and

(b)  the amount determined under subparagraph a or b of the first paragraph is deemed to be equal to that amount, otherwise determined, multiplied by the proportion that the number of days in the year is of 365.

However, an amount to which section 421.1 applies for a taxation year must not be included in computing the aggregate referred to in the first paragraph, in relation to a business of the taxpayer, where it is an amount in respect of food or beverages consumed by a person in a place that is at least 40 km from the taxpayer’s place of business where that person ordinarily works or to which that person is ordinarily attached and to the extent that the amount is paid or payable in connection with activities related to the business that are ordinarily carried on by a person in a place so remotely located from that place of business.

In addition, no taxpayer who is a member of a partnership at the end of a fiscal period of the partnership may, in respect of a business carried on by the partnership or of property owned by the partnership, deduct an amount incurred by the taxpayer and to which section 421.1 applies, in computing income from the business or property for the taxpayer’s taxation year in which that fiscal period ends.

2004, c. 21, s. 65; 2005, c. 23, s. 42; 2011, c. 1, s. 24; 2012, c. 8, s. 43.

2011-02-17

175.6.1. The aggregate of all amounts that a taxpayer may deduct in computing income from a business or property for a taxation year, each of which is an amount to which section 421.1 applies for the year, shall not exceed

(a)  in respect of a business of the taxpayer that consists in acting as an intermediary in selling property included in the inventory of another taxpayer,

i.  if the taxpayer’s deemed gross revenue for the year from the business referred to in this subparagraph does not exceed $32,500, the amount determined by the formula

[2% × (A/B)] + [2% × (C − A)],

ii.  if the taxpayer’s deemed gross revenue for the year from the business referred to in this subparagraph exceeds $32,500 but does not exceed $51,999, $650, and

iii.  if the taxpayer’s deemed gross revenue for the year from the business referred to in this subparagraph exceeds $51,999, the amount determined by the formula

[1.25% × (A/B)] + [1.25% × (C − A)];

(b)  in any other case,

i.  if the taxpayer’s gross revenue for the year from the business or property does not exceed $32,500, an amount equal to 2% of that gross revenue,

ii.  if the taxpayer’s gross revenue for the year from the business or property exceeds $32,500 but does not exceed $51,999, $650, and

iii.   if the taxpayer’s gross revenue for the year from the business or property exceeds $51,999, an amount equal to 1.25% of that gross revenue.

For the purposes of subparagraphs i to iii of subparagraph a of the first paragraph, the taxpayer’s deemed gross revenue for the year from the business referred to in that subparagraph a is the amount determined by the formula

(A/B) + (C - A).

In the formulas in subparagraphs i and iii of subparagraph a of the first paragraph and in the second paragraph,

(a)  A is the aggregate of all amounts each of which is the amount of a commission that the taxpayer included in computing income for the year from the business referred to in that subparagraph a;

(b)  B is the average percentage of the aggregate of all the commissions in respect of which the taxpayer included the amount in computing income for the year from the business referred to in that subparagraph a; and

(c)  C is the taxpayer’s gross revenue for the year from the business referred to in that subparagraph a.

If the number of days in the taxation year of the taxpayer is less than 365, the following rules apply:

(a)  for the purposes of subparagraphs a and b of the first paragraph, the taxpayer’s deemed gross revenue or gross revenue for the year from a business or property is deemed to be equal to the amount obtained by multiplying that revenue by the proportion that 365 is of the number of days in the year; and

(b)  the amount determined under subparagraph a or b of the first paragraph is deemed to be equal to that amount, otherwise determined, multiplied by the proportion that the number of days in the year is of 365.

However, an amount to which section 421.1 applies for a taxation year shall not be included in computing the aggregate referred to in the first paragraph, in relation to a business of the taxpayer, where it is an amount in respect of food or beverages consumed in a place that is at least 40 km from the taxpayer’s place of business by a person who habitually works in that place of business or is ordinarily attached thereto and the amount is an amount paid or payable in connection with activities related to the business that are carried on by that person in a place that is at least 40 km from that place of business.

In addition, no taxpayer who is a member of a partnership at the end of a fiscal period of the partnership may, in respect of a business carried on by the partnership or of property owned by the partnership, deduct an amount incurred by the taxpayer and to which section 421.1 applies, in computing income from the business or property for the taxpayer’s taxation year in which that fiscal period ends.

2004, c. 21, s. 65; 2005, c. 23, s. 42; 2011, c. 1, s. 24.

2006-03-01

175.6.1. The aggregate of all amounts that a taxpayer may deduct in computing income from a business or property for a taxation year, each of which is an amount to which section 421.1 applies for the year, shall not exceed

(a)  in respect of a business of the taxpayer that consists in acting as an intermediary in selling property included in the inventory of another taxpayer,

i.  if the taxpayer’s gross revenue for the year from the business referred to in this subparagraph does not exceed $32,500, the amount determined by the formula

[2% × (A / B)] + [2% × (C − A)],

ii.  if the taxpayer’s gross revenue for the year from the business referred to in this subparagraph exceeds $32,500 but does not exceed $51,999, $650, and

iii.  if the taxpayer’s gross revenue for the year from the business referred to in this subparagraph exceeds $51,999, the amount determined by the formula

[1.25% × (A / B)] + [1.25% × (C − A)];

(b)  in any other case,

i.  if the taxpayer’s gross revenue for the year from the business or property does not exceed $32,500, an amount equal to 2% of that gross revenue,

ii.  if the taxpayer’s gross revenue for the year from the business or property exceeds $32,500 but does not exceed $51,999, $650, and

iii.   if the taxpayer’s gross revenue for the year from the business or property exceeds $51,999, an amount equal to 1.25% of that gross revenue.

In the formulas in subparagraphs i and iii of subparagraph a of the first paragraph,

(a)  A is the aggregate of all amounts each of which is the amount of a commission that the taxpayer included in computing income for the year from the business referred to in that subparagraph a;

(b)  B is the average percentage of the aggregate of all the commissions in respect of which the taxpayer included the amount in computing income for the year from the business referred to in that subparagraph a; and

(c)  C is the taxpayer’s gross revenue for the year from the business referred to in that subparagraph a.

If the number of days in the taxation year of the taxpayer is less than 365, the following rules apply:

(a)  for the purposes of subparagraphs a and b of the first paragraph, the taxpayer’s gross revenue for the year from a business or property is deemed to be equal to the amount obtained by multiplying that revenue by the proportion that 365 is of the number of days in the year; and

(b)  the amount determined under subparagraph a or b of the first paragraph is deemed to be equal to that amount, otherwise determined, multiplied by the proportion that the number of days in the year is of 365.

However, an amount to which section 421.1 applies for a taxation year shall not be included in computing the aggregate referred to in the first paragraph, in relation to a business of the taxpayer, where it is an amount in respect of food or beverages consumed in a place that is at least 40 kilometres from the taxpayer’s place of business by a person who habitually works in that place of business or is ordinarily attached thereto and the amount is an amount paid or payable in connection with activities related to the business that are carried on by that person in a place that is at least 40 kilometres from that place of business.

In addition, no taxpayer who is a member of a partnership at the end of a fiscal period of the partnership may, in respect of a business carried on by the partnership or of property owned by the partnership, deduct an amount incurred by the taxpayer and to which section 421.1 applies, in computing income from the business or property for the taxpayer’s taxation year in which that fiscal period ends.

2004, c. 21, s. 65; 2005, c. 23, s. 42.