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I-3 - Taxation Act
Section 1129.40
Disposition versions
1129.40. Every taxpayer who is a member of a partnership and who is deemed to have paid to the Minister, under section 1029.8.33.7, an amount as partial payment of the taxpayer’s tax payable under Part I for a particular taxation year in respect of the taxpayer’s share of the amount of a qualified expenditure made by the partnership in a particular fiscal period of the partnership that ends in that particular year, shall, where during a subsequent fiscal period of the partnership, an amount relating to that expenditure is, directly or indirectly, refunded or otherwise paid to the partnership or allocated to a payment to be made by the partnership, pay, for the taxation year in which that subsequent fiscal period ends, tax equal to the amount obtained by applying to the taxpayer’s share of the amount so refunded, paid or allocated the percentage applied to the taxpayer’s share of the qualified expenditure for the particular taxation year under section 1029.8.33.7.
For the purposes of the first paragraph, the taxpayer’s share of an amount refunded, paid or allocated is equal to the agreed proportion of the amount in respect of the taxpayer for the partnership’s particular fiscal period.
However, the first paragraph applies in respect of an amount refunded, paid or allocated only to the extent that the amount of the qualified expenditure to which the amount relates exceeds the amount that would be determined if each of the particular amounts taken into account for the purpose of determining that amount were reduced, where applicable, by every amount that, not later than in the subsequent fiscal period referred to in the first paragraph, was refunded or otherwise paid to the partnership or allocated to a payment it was required to make, in respect of the particular amount.
1129.40. Every taxpayer who is a member of a partnership and who is deemed to have paid to the Minister, under section 1029.8.33.7, an amount as partial payment of the taxpayer’s tax payable under Part I for a particular taxation year in respect of the taxpayer’s share of the amount of a qualified expenditure made by the partnership in a particular fiscal period of the partnership that ends in that particular year, shall, where during a subsequent fiscal period of the partnership, an amount relating to that expenditure is, directly or indirectly, refunded or otherwise paid to the partnership or allocated to a payment to be made by the partnership, pay, for the taxation year in which that subsequent fiscal period ends, tax equal to the amount obtained by applying to the taxpayer’s share of the amount so refunded, paid or allocated the percentage applied to the taxpayer’s share of the qualified expenditure for the particular taxation year under section 1029.8.33.7.
For the purposes of the first paragraph, the taxpayer’s share of an amount refunded, paid or allocated is equal to such proportion of that amount as the share of the taxpayer of the income or loss of the partnership for the particular fiscal period of the partnership, is of the income or loss of that partnership for that fiscal period, on the assumption that, if the income and loss of the partnership for that fiscal period are nil, the partnership’s income for that fiscal period is equal to $1,000,000.
However, the first paragraph applies in respect of an amount refunded, paid or allocated only to the extent that the amount of the qualified expenditure to which the amount relates exceeds the amount that would be determined if each of the particular amounts taken into account for the purpose of determining that amount were reduced, where applicable, by every amount that, not later than in the subsequent fiscal period referred to in the first paragraph, was refunded or otherwise paid to the partnership or allocated to a payment it was required to make, in respect of the particular amount.
1129.40. Every taxpayer who is a member of a partnership and who is deemed to have paid to the Minister, under section 1029.8.33.7, an amount as partial payment of the taxpayer’s tax payable under Part I for a particular taxation year in respect of the taxpayer’s share of the amount of a qualified expenditure made by the partnership in a particular fiscal period of the partnership that ends in that particular year, shall, where during a subsequent fiscal period of the partnership, an amount relating to that expenditure is, directly or indirectly, refunded to the partnership or allocated to a payment to be made by the partnership, pay, for the taxation year in which that subsequent fiscal period ends, tax equal to the amount obtained by applying to the taxpayer’s share of the amount so refunded or allocated the percentage applied to the taxpayer’s share of the qualified expenditure for the particular taxation year under section 1029.8.33.7.
For the purposes of the first paragraph, the taxpayer’s share of an amount refunded or allocated is equal to such proportion of that amount as the share of the taxpayer of the income or loss of the partnership for the particular fiscal period of the partnership, is of the income or loss of that partnership for that fiscal period, on the assumption that, if the income and loss of the partnership for that fiscal period are nil, the partnership’s income for that fiscal period is equal to $1,000,000.
However, the first paragraph applies in respect of an amount refunded or allocated only to the extent that the amount of the qualified expenditure to which the amount relates exceeds the amount that would be determined if each of the particular amounts taken into account for the purpose of determining that amount were reduced, where applicable, by every amount that, not later than in the subsequent fiscal period referred to in the first paragraph, was refunded to the partnership, or was allocated to a payment it was required to make, in respect of the particular amount.
