I-3 - Taxation Act

Section 1135.2 Disposition versions

2009-05-15

1135.2. A corporation to which Title I of Book III applies may deduct from its tax otherwise payable under this Part for a particular taxation year, determined before the application of section 1135.1, an amount not exceeding the amount by which the balance of the amount that the corporation has not deducted under the first paragraph of section 1135.1, in respect of the costs referred to in that paragraph, for any given taxation year preceding the particular year, otherwise than because of the application of section 1135.8 or 1135.8.1, in this section referred to as the “particular balance”, exceeds any amount deducted under this section, in respect of those costs, for a taxation year preceding the particular year.

However, the amount that the corporation may deduct under the first paragraph, in respect of the costs referred to in that paragraph and incurred by the corporation or by a partnership of which it was a member at the end of the fiscal period of the partnership ending in the given taxation year, must be reduced by the amount determined under the third paragraph if

(a)  in the particular year or a preceding taxation year, an amount relating to the costs incurred by the corporation, other than an amount having reduced the amount of those costs in accordance with any of subparagraphs a to b of the first paragraph of section 1135.1 or section 1135.4, is, directly or indirectly, refunded or otherwise paid to the corporation or allocated to a payment to be made by the corporation; or

(b)  in a fiscal period of a partnership ending in the particular year or in a preceding taxation year and at the end of which the corporation is a member of that partnership, an amount relating to the costs incurred by that partnership, other than an amount having reduced the amount of those costs, or the corporation’s share of the amount of those costs, in accordance with any of subparagraphs a to b of the first paragraph of section 1135.1 or section 1135.4, is, directly or indirectly, refunded or otherwise paid to the partnership or corporation or allocated to a payment to be made by the partnership or corporation.

The amount to which the second paragraph refers is the amount by which the particular balance exceeds the amount that would be the amount of the particular balance if

(a)  any amount referred to in subparagraph a or b of the second paragraph that is, directly or indirectly, refunded or otherwise paid to the corporation or allocated to a payment to be made by the corporation were directly or indirectly, refunded or otherwise paid to the corporation or allocated to a payment to be made by the corporation in the given taxation year; and

(b)  any amount referred to in subparagraph b of the second paragraph that is, directly or indirectly, refunded or otherwise paid to a partnership referred to in that subparagraph b or allocated to a payment to be made by the partnership were directly or indirectly, refunded or otherwise paid to the partnership or allocated to a payment to be made by the partnership in the partnership’s fiscal period ending in the given taxation year.

If, in respect of the costs referred to in the first paragraph, a person other than the corporation, or a partnership other than the particular partnership that incurred those costs, has obtained, at a particular time, a benefit or advantage that would have reduced those costs in accordance with section 1135.4 if the person or partnership had obtained it, had been entitled to obtain it or could reasonably have expected to obtain it on or before the corporation’s filing-due date for the given taxation year, or on or before the day that is six months after the end of the fiscal period of the particular partnership that ends in the given taxation year, the benefit or advantage is, for the purposes of the second and third paragraphs,

(a)  if those costs were incurred by the corporation, deemed to be an amount that is paid to the corporation at that time; or

(b)  if those costs were incurred by the particular partnership, deemed to be

i.  an amount that is paid to the particular partnership at that time, when the benefit or advantage has been obtained by another partnership or by a person other than the person referred to in subparagraph ii, or

ii.  an amount that is paid to the corporation at that time, when the benefit or advantage has been obtained by a person with whom the corporation is not dealing at arm’s length.

2005, c. 38, s. 314; 2006, c. 36, s. 252; 2007, c. 12, s. 278; 2009, c. 5, s. 540.

2007-11-07

1135.2. A corporation to which Title I of Book III applies may deduct from its tax otherwise payable under this Part for a particular taxation year, determined before the application of section 1135.1, an amount not exceeding the amount by which the balance of the amount that the corporation has not deducted under the first paragraph of section 1135.1, in respect of the costs referred to in that paragraph, for any given taxation year preceding the particular year, otherwise than because of the application of section 1135.8 or 1135.8.1, in this section referred to as the “particular balance”, exceeds any amount deducted under this section, in respect of those costs, for a taxation year preceding the particular year.

However, the amount that the corporation may deduct under the first paragraph, in respect of the costs referred to in that paragraph and incurred by the corporation or by a partnership of which it was a member at the end of the fiscal period of the partnership ending in the given taxation year, must be reduced by the amount determined under the third paragraph if

(a)  in the particular year or a preceding taxation year, an amount relating to the costs incurred by the corporation, other than an amount having reduced the amount of those costs in accordance with subparagraphs a and b of the first paragraph of section 1135.1 or section 1135.4, is, directly or indirectly, refunded or otherwise paid to the corporation or allocated to a payment to be made by the corporation; or

(b)  in a fiscal period of a partnership ending in the particular year or in a preceding taxation year and at the end of which the corporation is a member of that partnership, an amount relating to the costs incurred by that partnership, other than an amount having reduced the amount of those costs, or the corporation’s share of the amount of those costs, in accordance with subparagraphs a and b of the first paragraph of section 1135.1 or section 1135.4, is, directly or indirectly, refunded or otherwise paid to the partnership or corporation or allocated to a payment to be made by the partnership or corporation.

The amount to which the second paragraph refers is the amount by which the particular balance exceeds the amount that would be the amount of the particular balance if

(a)  any amount referred to in subparagraph a or b of the second paragraph that is, directly or indirectly, refunded or otherwise paid to the corporation or allocated to a payment to be made by the corporation were directly or indirectly, refunded or otherwise paid to the corporation or allocated to a payment to be made by the corporation in the given taxation year; and

(b)  any amount referred to in subparagraph b of the second paragraph that is, directly or indirectly, refunded or otherwise paid to a partnership referred to in that subparagraph b or allocated to a payment to be made by the partnership were directly or indirectly, refunded or otherwise paid to the partnership or allocated to a payment to be made by the partnership in the partnership’s fiscal period ending in the given taxation year.

If, in respect of the costs referred to in the first paragraph, a person other than the corporation, or a partnership other than the particular partnership that incurred those costs, has obtained, at a particular time, a benefit or advantage that would have reduced those costs in accordance with section 1135.4 if the person or partnership had obtained it, had been entitled to obtain it or could reasonably have expected to obtain it on or before the corporation’s filing-due date for the given taxation year, or on or before the day that is six months after the end of the fiscal period of the particular partnership that ends in the given taxation year, the benefit or advantage is, for the purposes of the second and third paragraphs,

(a)  if those costs were incurred by the corporation, deemed to be an amount that is paid to the corporation at that time; or

(b)  if those costs were incurred by the particular partnership, deemed to be

i.  an amount that is paid to the particular partnership at that time, when the benefit or advantage has been obtained by another partnership or by a person other than the person referred to in subparagraph ii, or

ii.  an amount that is paid to the corporation at that time, when the benefit or advantage has been obtained by a person with whom the corporation is not dealing at arm’s length.

2005, c. 38, s. 314; 2006, c. 36, s. 252; 2007, c. 12, s. 278.

2006-12-06

1135.2. A corporation to which Title I of Book III applies may deduct from its tax otherwise payable under this Part for a particular taxation year, determined before the application of section 1135.1, an amount not exceeding the amount by which the balance of the amount that the corporation has not deducted under the first paragraph of section 1135.1, in respect of costs referred to in that paragraph, for any taxation year, otherwise than because of the application of section 1135.8 or 1135.8.1, exceeds any amount deducted under this section, in respect of such costs, for a taxation year that precedes the particular taxation year.

However, the amount that a corporation may deduct under the first paragraph, in respect of costs referred to in that paragraph, is to be reduced by the aggregate of

(a)  the aggregate of all amounts each of which is an amount of government assistance or non-government assistance, attributable to such costs, that the corporation has received, is entitled to receive or may reasonably expect to receive, on or before the corporation’s filing-due date for the particular taxation year, other than such an amount of assistance, attributable to such costs, that reduced the amount of costs incurred by the corporation or the corporation’s share of the amount of the costs incurred by a partnership of which the corporation is a member at the end of its fiscal period that ends in the particular taxation year, in accordance with subparagraph i or ii of subparagraphs a and b of the first paragraph of section 1135.1; and

(b)  the aggregate of all amounts each of which is the corporation’s share of an amount of government assistance or non-government assistance, attributable to such costs, that a partnership of which the corporation is a member at the end of its fiscal period that ends in the particular taxation year of the corporation has received, is entitled to receive or may reasonably expect to receive, on or before the day that is six months after the end of that fiscal period, other than such an amount of assistance, attributable to such costs, that reduced the amount of the costs incurred by the partnership in accordance with subparagraph ii of subparagraph a or b of the first paragraph of section 1135.1.

2005, c. 38, s. 314; 2006, c. 36, s. 252.

2006-03-01

1135.2. A corporation to which Title I of Book III applies may deduct from its tax otherwise payable under this Part for a particular taxation year, determined before the application of section 1135.1, an amount not exceeding the amount by which the balance of the amount that the corporation has not deducted under the first paragraph of section 1135.1, in respect of costs referred to in that paragraph, for any taxation year, otherwise than because of the application of section 1135.8, exceeds any amount deducted under this section, in respect of such costs, for a taxation year that precedes the particular taxation year.

However, the amount that a corporation may deduct under the first paragraph, in respect of costs referred to in that paragraph, is to be reduced by the aggregate of

(a)  the aggregate of all amounts each of which is an amount of government assistance or non-government assistance, attributable to such costs, that the corporation has received, is entitled to receive or may reasonably expect to receive, on or before the corporation’s filing-due date for the particular taxation year, other than such an amount of assistance, attributable to such costs, that reduced the amount of costs incurred by the corporation or the corporation’s share of the amount of the costs incurred by a partnership of which the corporation is a member at the end of its fiscal period that ends in the particular taxation year, in accordance with subparagraph a or b of the first paragraph of section 1135.1; and

(b)  the aggregate of all amounts each of which is the corporation’s share of an amount of government assistance or non-government assistance, attributable to such costs, that a partnership of which the corporation is a member at the end of its fiscal period that ends in the particular taxation year of the corporation has received, is entitled to receive or may reasonably expect to receive, on or before the day that is six months after the end of that fiscal period, other than such an amount of assistance, attributable to such costs, that reduced the amount of the costs incurred by the partnership in accordance with subparagraph b of the first paragraph of section 1135.1.

2005, c. 38, s. 314.