I-3 - Taxation Act

Section 1029.8.16.2 Disposition versions

2010-10-27

1029.8.16.2. (Repealed).

2005, c. 1, s. 267; 2010, c. 25, s. 122.

2006-03-01

1029.8.16.2. In this division,

“base period” of a qualified corporation for a particular taxation year means,

(a)  in the case of a corporation having a period of three consecutive taxation years that ends immediately before the particular taxation year, that period; and

(b)  in any other case, subject to subparagraph a of the first paragraph of section 1029.8.16.3 and paragraph a of section 1029.8.16.4, the period commencing on the first day of the first taxation year of the corporation and ending immediately before the particular taxation year;

“eligible amount” of a qualified corporation for a taxation year means the aggregate of all amounts each of which is wages or part of a consideration, a qualified expenditure, an eligible fee, an eligible fee balance or its share of such an amount, as the case may be, in respect of which the corporation is deemed to have paid an amount to the Minister on account of its tax payable for the year under any of Divisions II to II.3;

“expenditure base” of a qualified corporation for a particular taxation year means

(a)  where the qualified corporation is not associated with another corporation at any time in the particular taxation year, such proportion of the aggregate of all amounts each of which is equal to the eligible amount of the corporation for each taxation year within its base period for the particular taxation year determined in accordance with this section or subparagraph a of the first paragraph of section 1029.8.16.3 or paragraph a of section 1029.8.16.4, as the case may be, as the number of days in the particular taxation year is of the number of days in that base period, or, where the particular taxation year of the corporation, other than a corporation resulting from an amalgamation, is its first taxation year, an amount equal to zero; and

(b)  where the qualified corporation is associated with one or more other corporations at any time in the particular taxation year, the amount determined by the formula

(A × B) / (B + C);

“qualified corporation” for a taxation year means a corporation that was, throughout the year, a corporation that is not controlled, directly or indirectly in any manner whatever, by one or more persons not resident in Canada and whose assets as determined in the manner provided for in Division II and as shown in its financial statements submitted to the shareholders or, where such financial statements have not been prepared, or have not been prepared in accordance with generally accepted accounting principles, that would be shown if such financial statements had been prepared in accordance with generally accepted accounting principles, for its preceding taxation year or, where the corporation is in its first fiscal period, at the beginning of its first fiscal period, were less than $25,000,000.

In the formula provided for in paragraph b of the definition of “expenditure base” in the first paragraph,

(a)  A is the aggregate of

i.  the amount that would be the expenditure base of the qualified corporation for the particular taxation year if the qualified corporation were not associated with another corporation at any time in that year, and

ii.  the aggregate of all amounts each of which is equal to the amount that would be the expenditure base of another corporation with which the qualified corporation is associated at any time in the particular taxation year, for the taxation year of the other corporation that ends in the calendar year in which the particular taxation year ended, if the other corporation were not associated with another corporation at any time in the particular taxation year;

(b)  B is the eligible amount of the qualified corporation for the particular taxation year; and

(c)  C is the aggregate of all amounts each of which is equal to the eligible amount of another corporation with which the qualified corporation is associated at any time in the particular taxation year for its taxation year that ends in the calendar year in which the particular taxation year ended.

2000, c. 39, s. 128; 2001, c. 51, s. 93; 2002, c. 9, s. 49.