I-3 - Taxation Act

Section 737.18.15 Disposition versions

2021-01-01

737.18.15. (Repealed).

2002, c. 9, s. 13; 2005, c. 1, s. 143; 2012, c. 8, s. 77; 2019, c. 14, s. 196.

2012-05-09

737.18.15. For the purpose of determining, for the purposes of this Title, the income or loss of a corporation for a taxation year, or of a partnership for a fiscal period, from the eligible activities relating to a major investment project, the income or loss shall be computed as if

(a)  the eligible activities of the corporation or partnership were the carrying on of a separate business; and

(b)  the corporation or partnership were deducting in computing its income for the taxation year or fiscal period and had deducted in computing its income for any preceding taxation year or fiscal period, in relation to the separate business, the maximum amount in respect of any reserve, allowance or other amount.

For the purposes of subparagraph b of the first paragraph, the following rules apply:

(a)  the undepreciated capital cost, on the date of the beginning of the tax-free period of the corporation or partnership, in respect of the major investment project, of depreciable property of a prescribed class in relation to the separate business referred to in subparagraph a of the first paragraph, is deemed to include, as of that date, the amount that is the amount by which the total depreciation, within the meaning of paragraph b of section 93, allowed to the corporation or partnership, as the case may be, before that date, in respect of property of that class, exceeds the aggregate of all amounts each of which is an amount that the corporation or partnership, as the case may be, included, pursuant to section 94, in respect of property of that class, in computing its income for a taxation year or fiscal period ending before that date; and

(b)  the eligible incorporeal capital amount of the corporation or partnership, in respect of the separate business referred to in subparagraph a of the first paragraph, on the date of the beginning of the tax-free period of the corporation or partnership, in respect of the major investment project, is deemed to include, as of that date, the amount that is the amount by which the aggregate of all amounts each of which is an amount that the corporation or partnership, as the case may be, deducted in computing its income from the separate business, pursuant to paragraph b of section 130, for a taxation year or fiscal period that ended before that date, exceeds the aggregate of all amounts each of which is an amount that the corporation or partnership, as the case may be, included in computing its income from the separate business under section 105 for a taxation year or fiscal period that ended before that date.

2002, c. 9, s. 13; 2005, c. 1, s. 143; 2012, c. 8, s. 77.

2006-03-01

737.18.15. For the purpose of determining, for the purposes of this Title, the income or loss of a corporation for a taxation year, or of a partnership for a fiscal period, from the eligible activities relating to a major investment project, the income or loss shall be computed as if

(a)  the eligible activities of the corporation or partnership were the carrying on of a separate business; and

(b)  the corporation or partnership were deducting in computing its income for the taxation year or fiscal period and had deducted in computing its income for any preceding taxation year or fiscal period, in relation to the separate business, the maximum amount in respect of any reserve, allowance or other amount.

For the purposes of subparagraph b of the first paragraph, the following rules apply:

(a)  the undepreciated capital cost, on the date of the beginning of the exemption period of the corporation or partnership, in respect of the major investment project, of depreciable property of a prescribed class in relation to the separate business referred to in subparagraph a of the first paragraph, is deemed to include, as of that date, the amount that is the amount by which the total depreciation, within the meaning of paragraph b of section 93, allowed to the corporation or partnership, as the case may be, before that date, in respect of property of that class, exceeds the aggregate of all amounts each of which is an amount that the corporation or partnership, as the case may be, included, pursuant to section 94, in respect of property of that class, in computing its income for a taxation year or fiscal period ending before that date; and

(b)  the eligible incorporeal capital amount of the corporation or partnership, in respect of the separate business referred to in subparagraph a of the first paragraph, on the date of the beginning of the exemption period of the corporation or partnership, in respect of the major investment project, is deemed to include, as of that date, the amount that is the amount by which the aggregate of all amounts each of which is an amount that the corporation or partnership, as the case may be, deducted in computing its income from the separate business, pursuant to paragraph b of section 130, for a taxation year or fiscal period that ended before that date, exceeds the aggregate of all amounts each of which is an amount that the corporation or partnership, as the case may be, included in computing its income from the separate business under section 105 for a taxation year or fiscal period that ended before that date.

2002, c. 9, s. 13; 2005, c. 1, s. 143.