I-3 - Taxation Act

Section 1042.1 Disposition versions

2011-06-06

1042.1. Where the tax payable under this Part by a taxpayer for a particular taxation year is increased because of one of the following operations, no interest is payable, in respect of the amount of the increase, for the period specified in the second paragraph:

(a)  an adjustment of an income or profits tax payable by the taxpayer to the government of a foreign country or political subdivision of a foreign country;

(b)  a reduction in the amount of taxes that meet the conditions under subparagraphs a to c of the first paragraph of section 772.5.2, that is deductible under section 772.6 or 772.8 in computing the taxpayer’s tax otherwise payable under this Part for the particular year, as a result of the application of section 772.5.2, or, in the case of a corporation, of subsection 4.2 of section 126 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), in respect of a share or debt obligation disposed of by the taxpayer in the taxation year following the particular year; or

(c)  an adjustment of the income tax paid for a taxation year by a designated trust, within the meaning of the first paragraph of section 671.5, to the government of a province, other than Québec, in respect of which the taxpayer deducted, under section 772.15, an amount in computing the taxpayer’s tax otherwise payable under this Part for the particular year, other than an adjustment that results from modifications made in computing the designated trust’s income.

The period to which the first paragraph refers is the period

(a)  that ends 90 days after the date on which the taxpayer is first notified of the amount of the adjustment, if subparagraph a of the first paragraph applies;

(b)  before the date of the disposition, if subparagraph b of the first paragraph applies; and

(c)  that ends 90 days after the date on which the designated trust is first notified of the amount of the adjustment, if subparagraph c of the first paragraph applies.

1984, c. 15, s. 235; 2001, c. 53, s. 233; 2004, c. 21, s. 442; 2011, c. 6, s. 208.

2006-03-01

1042.1. Where the tax payable under this Part by a taxpayer for a particular taxation year is increased because of one of the following operations, no interest is payable, in respect of the amount of the increase, for the period specified in the second paragraph:

(a)  an adjustment of an income or profits tax payable by the taxpayer to the government of a foreign country or political subdivision of a foreign country;

(b)  a reduction in the amount of taxes that meet the conditions under subparagraphs a to c of the first paragraph of section 772.5.2, that is deductible under section 772.6 or 772.8 in computing the taxpayer’s tax otherwise payable under this Part for the particular year, as a result of the application of section 772.5.2, or, in the case of a corporation, of subsection 4.2 of section 126 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), in respect of a share or debt obligation disposed of by the taxpayer in the taxation year following the particular year; or

(c)  an adjustment of the income tax paid for a taxation year by a designated trust, within the meaning of section 671.5, to the government of a province, other than Québec, in respect of which the taxpayer deducted, under section 772.15, an amount in computing the taxpayer’s tax otherwise payable under this Part for the particular year, other than an adjustment that results from modifications made in computing the designated trust’s income.

The period to which the first paragraph refers is the period

(a)  that ends 90 days after the date on which the taxpayer is first notified of the amount of the adjustment, if subparagraph a of the first paragraph applies;

(b)  before the date of the disposition, if subparagraph b of the first paragraph applies; and

(c)  that ends 90 days after the date on which the designated trust is first notified of the amount of the adjustment, if subparagraph c of the first paragraph applies.

1984, c. 15, s. 235; 2001, c. 53, s. 233; 2004, c. 21, s. 442.