I-3 - Taxation Act

Section 1137 Disposition versions

2021-06-02

1137. In computing its paid-up capital, a corporation may deduct

(a)  the amount of its deficit;

(b)  the costs pertaining to the issue of shares or bonds, including discount, provided they were not used to reduce its surplus or its paid-up capital;

(b.0.1)  where it has included in that computation for the taxation year an amount relating to the financing of new automotive equipment that it has acquired for the purpose of resale, an amount equal to 50% of the lesser of the amount shown in its financial statements in relation to such automotive equipment it has in stock and the amount so included in that computation;

(b.0.2)  the provision for the redemption of retractable or mandatorily redeemable shares issued at the end of the taxation year, provided the redemption value of those shares was included in that computation;

(b.1)  the amount of its future tax assets;

(b.1.1)  the amount of the corporation’s deferred unrealized foreign exchange losses at the end of the taxation year;

(b.1.2)  the amount determined for the taxation year under section 1137.0.0.2, unless the corporation is for that year a prescribed corporation for the purposes of subparagraph a of the first paragraph of section 1143;

(b.2)  where it holds, at the end of the taxation year, in respect of an eligible vessel, a valid certificate issued by the Minister of Economic Development, Innovation and Export Trade, where the taxation year is included in its deduction period and where it encloses with the fiscal return it is required to file for the year under section 1000, by reason of section 1145, a copy of that certificate, the aggregate of

i.  the amount by which its eligible acquisition costs for the year in respect of the eligible vessel exceeds 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 can reasonably expect to receive on or before its filing-due date for that year, and

ii.  the aggregate of all amounts each of which is an amount paid by the corporation in the year, or in a preceding taxation year, as a repayment of assistance referred to in subparagraph i;

(b.2.1)  where it holds, at the end of the taxation year, in respect of an eligible vessel, a valid certificate issued by the Minister of Economic Development, Innovation and Export Trade, where the taxation year is included in its deduction period and where it encloses with its fiscal return it is required to file for the year under section 1000, by reason of section 1145, a copy of that certificate, the aggregate of

i.  the amount by which its eligible conversion costs for the year in respect of the eligible vessel exceeds 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 its filing-due date for that year, and

ii.  the aggregate of all amounts each of which is an amount paid by the corporation in the year, or in a preceding taxation year, as a repayment of assistance referred to in subparagraph i;

(b.3)  subject to the first paragraph of section 1137.2, where the corporation is the owner at the end of a taxation year of property described in the first paragraph of section 1137.5 and where that year is the year in which it acquired the property or the year following that year, an amount equal to the amount by which the aggregate of the costs it incurred to acquire the property in the year in which it acquired the property, except an amount incurred with a person with whom the corporation or a specified shareholder of the corporation does not deal at arm’s length, that are related to a business carried on by the corporation in the year in Québec, and that are included, at the end of that year, in the capital cost of the property, exceeds the aggregate of all amounts each of which is an amount of any 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 that year;

(b.4)  subject to the second paragraph of section 1137.2, where the corporation is, at the end of a taxation year, the owner of property described in the first paragraph of section 1137.5 as a consequence of the transfer of the property to the corporation in any of the circumstances described in section 130R149 of the Regulation respecting the Taxation Act (chapter I-3, r. 1), by a corporation, referred to as the “transferor” in this paragraph and in the second paragraph of section 1137.2, and the transferor would have been, had it been the owner of the property at the end of that year, entitled to deduct under paragraph b.3 an amount in computing its paid-up capital in respect of the property for its taxation year that includes the time of the transfer, an amount equal to the amount by which the amount that the transferor would have been entitled to so deduct in respect of the property under that paragraph b.3 in computing its paid-up capital for the year that includes the time of the transfer, exceeds the aggregate of all amounts each of which is an amount of government assistance or non-government assistance attributable to the property, 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 its taxation year;

(b.5)  an amount equal to 33 1/3% of the portion of its paid-up capital that would, but for this paragraph, be determined under sections 1136 to 1138 that

i.  the greater of

(1)  its gross revenue for the taxation year from a mineral resource owned or operated by it, and

(2)  the capital cost, to the corporation, of property acquired in the year in the course of a major expansion that results in any of the consequences described in subparagraphs 1 and 2 of subparagraph ii of subparagraph a of the first paragraph of Class 28 of Schedule B to the Regulation respecting the Taxation Act, that is added to the capital cost, to the corporation, of the property of Class 41 of that Schedule, is of

ii.  the aggregate of its gross revenue for that year and, where applicable, the amount by which the amount determined under subparagraph 2 of subparagraph i of this paragraph exceeds the amount determined under subparagraph 1 of that subparagraph;

(c)  (paragraph repealed);

(d)  where the corporation is a qualified corporation for the taxation year, any amount included by the corporation in that computation for the taxation year otherwise than under paragraph b.2 of subsection 1 of section 1136, to the extent that that amount is not otherwise deducted in that computation and is attributable to the eligible activities of a recognized business carried on by the corporation or by any partnership of which the corporation is a member, that are carried on during the base period applicable to the corporation or partnership, as the case may be, in respect of the eligible activities; and

(e)  where the corporation is a qualified corporation for the taxation year and the amount of the corporation’s deficit is less than the amount that would be the corporation’s deficit, but for the eligible activities of any recognized business carried on by the corporation or by any partnership of which the corporation is a member, that are carried on during the base period applicable to the corporation or partnership, as the case may be, in respect of the eligible activities, an amount equal to the amount by which the amount that would be the corporation’s deficit, if no reference were made to the eligible activities, exceeds the amount deducted by the corporation in computing its paid-up capital for the taxation year under paragraph a.

1972, c. 23, s. 850; 1979, c. 38, s. 27; 1986, c. 15, s. 201; 1990, c. 7, s. 211; 1995, c. 63, s. 242; 1997, c. 3, s. 71; 1997, c. 14, s. 274; 1997, c. 31, s. 137; 1997, c. 85, s. 311; 1999, c. 8, s. 20; 1999, c. 83, s. 257; 1999, c. 86, s. 92; 2000, c. 39, s. 249; 2001, c. 7, s. 166; 2001, c. 51, s. 222; 2002, c. 40, s. 313; 2003, c. 9, s. 421; 2004, c. 21, s. 489; 2005, c. 38, s. 316; 2006, c. 8, s. 31; 2006, c. 13, s. 216; 2009, c. 15, s. 435; 2021, c. 14, s. 192.

2009-06-04

1137. In computing its paid-up capital, a corporation may deduct

(a)  the amount of its deficit;

(b)  the costs pertaining to the issue of shares or bonds, including discount, provided they were not used to reduce its surplus or its paid-up capital;

(b.0.1)  where it has included in that computation for the taxation year an amount relating to the financing of new automotive equipment that it has acquired for the purpose of resale, an amount equal to 50% of the lesser of the amount shown in its financial statements in relation to such automotive equipment it has in stock and the amount so included in that computation;

(b.1)  the amount of its future tax assets;

(b.1.1)  the amount of the corporation’s deferred unrealized foreign exchange losses at the end of the taxation year;

(b.1.2)  the amount determined for the taxation year under section 1137.0.0.2, unless the corporation is for that year a prescribed corporation for the purposes of subparagraph a of the first paragraph of section 1143;

(b.2)  where it holds, at the end of the taxation year, in respect of an eligible vessel, a valid certificate issued by the Minister of Economic Development, Innovation and Export Trade, where the taxation year is included in its deduction period and where it encloses with the fiscal return it is required to file for the year under section 1000, by reason of section 1145, a copy of that certificate, the aggregate of

i.  the amount by which its eligible acquisition costs for the year in respect of the eligible vessel exceeds 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 can reasonably expect to receive on or before its filing-due date for that year, and

ii.  the aggregate of all amounts each of which is an amount paid by the corporation in the year, or in a preceding taxation year, as a repayment of assistance referred to in subparagraph i;

(b.2.1)  where it holds, at the end of the taxation year, in respect of an eligible vessel, a valid certificate issued by the Minister of Economic Development, Innovation and Export Trade, where the taxation year is included in its deduction period and where it encloses with its fiscal return it is required to file for the year under section 1000, by reason of section 1145, a copy of that certificate, the aggregate of

i.  the amount by which its eligible conversion costs for the year in respect of the eligible vessel exceeds 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 its filing-due date for that year, and

ii.  the aggregate of all amounts each of which is an amount paid by the corporation in the year, or in a preceding taxation year, as a repayment of assistance referred to in subparagraph i;

(b.3)  subject to the first paragraph of section 1137.2, where the corporation is the owner at the end of a taxation year of property described in the first paragraph of section 1137.5 and where that year is the year in which it acquired the property or the year following that year, an amount equal to the amount by which the aggregate of the costs it incurred to acquire the property in the year in which it acquired the property, except an amount incurred with a person with whom the corporation or a specified shareholder of the corporation does not deal at arm’s length, that are related to a business carried on by the corporation in the year in Québec, and that are included, at the end of that year, in the capital cost of the property, exceeds the aggregate of all amounts each of which is an amount of any 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 that year;

(b.4)  subject to the second paragraph of section 1137.2, where the corporation is, at the end of a taxation year, the owner of property described in the first paragraph of section 1137.5 as a consequence of the transfer of the property to the corporation in any of the circumstances described in section 130R149 of the Regulation respecting the Taxation Act (chapter I-3, r. 1), by a corporation, referred to as the “transferor” in this paragraph and in the second paragraph of section 1137.2, and the transferor would have been, had it been the owner of the property at the end of that year, entitled to deduct under paragraph b.3 an amount in computing its paid-up capital in respect of the property for its taxation year that includes the time of the transfer, an amount equal to the amount by which the amount that the transferor would have been entitled to so deduct in respect of the property under that paragraph b.3 in computing its paid-up capital for the year that includes the time of the transfer, exceeds the aggregate of all amounts each of which is an amount of government assistance or non-government assistance attributable to the property, 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 its taxation year;

(b.5)  an amount equal to 33 1/3% of the portion of its paid-up capital that would, but for this paragraph, be determined under sections 1136 to 1138 that

i.  the greater of

(1)  its gross revenue for the taxation year from a mineral resource owned or operated by it, and

(2)  the capital cost, to the corporation, of property acquired in the year in the course of a major expansion that results in any of the consequences described in subparagraphs 1 and 2 of subparagraph ii of subparagraph a of the first paragraph of Class 28 of Schedule B to the Regulation respecting the Taxation Act, that is added to the capital cost, to the corporation, of the property of Class 41 of that Schedule, is of

ii.  the aggregate of its gross revenue for that year and, where applicable, the amount by which the amount determined under subparagraph 2 of subparagraph i of this paragraph exceeds the amount determined under subparagraph 1 of that subparagraph;

(c)  (paragraph repealed);

(d)  where the corporation is a qualified corporation for the taxation year, any amount included by the corporation in that computation for the taxation year otherwise than under paragraph b.2 of subsection 1 of section 1136, to the extent that that amount is not otherwise deducted in that computation and is attributable to the eligible activities of a recognized business carried on by the corporation or by any partnership of which the corporation is a member, that are carried on during the base period applicable to the corporation or partnership, as the case may be, in respect of the eligible activities; and

(e)  where the corporation is a qualified corporation for the taxation year and the amount of the corporation’s deficit is less than the amount that would be the corporation’s deficit, but for the eligible activities of any recognized business carried on by the corporation or by any partnership of which the corporation is a member, that are carried on during the base period applicable to the corporation or partnership, as the case may be, in respect of the eligible activities, an amount equal to the amount by which the amount that would be the corporation’s deficit, if no reference were made to the eligible activities, exceeds the amount deducted by the corporation in computing its paid-up capital for the taxation year under paragraph a.

1972, c. 23, s. 850; 1979, c. 38, s. 27; 1986, c. 15, s. 201; 1990, c. 7, s. 211; 1995, c. 63, s. 242; 1997, c. 3, s. 71; 1997, c. 14, s. 274; 1997, c. 31, s. 137; 1997, c. 85, s. 311; 1999, c. 8, s. 20; 1999, c. 83, s. 257; 1999, c. 86, s. 92; 2000, c. 39, s. 249; 2001, c. 7, s. 166; 2001, c. 51, s. 222; 2002, c. 40, s. 313; 2003, c. 9, s. 421; 2004, c. 21, s. 489; 2005, c. 38, s. 316; 2006, c. 8, s. 31; 2006, c. 13, s. 216; 2009, c. 15, s. 435.

2006-06-13

1137. In computing its paid-up capital, a corporation may deduct

(a)  the amount of its deficit;

(b)  the costs pertaining to the issue of shares or bonds, including discount, provided they were not used to reduce its surplus or its paid-up capital;

(b.0.1)  where it has included in that computation for the taxation year an amount relating to the financing of new automotive equipment that it has acquired for the purpose of resale, an amount equal to 50% of the lesser of the amount shown in its financial statements in relation to such automotive equipment it has in stock and the amount so included in that computation;

(b.1)  the amount of its future tax assets;

(b.1.1)  the amount of the corporation’s deferred unrealized foreign exchange losses at the end of the taxation year;

(b.1.2)  the amount determined for the taxation year under section 1137.0.0.2, unless the corporation is for that year a prescribed corporation for the purposes of subparagraph a of the first paragraph of section 1143;

(b.2)  where it holds, at the end of the taxation year, in respect of an eligible vessel, a valid certificate issued by the Minister of Economic Development, Innovation and Export Trade, where the taxation year is included in its deduction period, where the certificate attests that the eligible vessel is a vessel with a gross tonnage of at least 50 tons and where it encloses with the fiscal return it is required to file for the year under section 1000, by reason of section 1145, a copy of that certificate, the aggregate of

i.  the amount by which its eligible acquisition costs for the year in respect of the eligible vessel exceeds 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 can reasonably expect to receive on or before its filing-due date for that year, and

ii.  the aggregate of all amounts each of which is an amount paid by the corporation in the year, or in a preceding taxation year, as a repayment of assistance referred to in subparagraph i;

(b.2.1)  where it holds, at the end of the taxation year, in respect of an eligible vessel, a valid certificate issued by the Minister of Economic Development, Innovation and Export Trade, where the taxation year is included in its deduction period, where the certificate attests that the eligible vessel is a vessel with a gross tonnage of at least 50 tons and where it encloses with its fiscal return it is required to file for the year under section 1000, by reason of section 1145, a copy of that certificate, the aggregate of

i.  the amount by which its eligible conversion costs for the year in respect of the eligible vessel exceeds 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 its filing-due date for that year, and

ii.  the aggregate of all amounts each of which is an amount paid by the corporation in the year, or in a preceding taxation year, as a repayment of assistance referred to in subparagraph i;

(b.3)  subject to the first paragraph of section 1137.2, where the corporation is the owner at the end of a taxation year of property described in the first paragraph of section 1137.5 and where that year is the year in which it acquired the property or the year following that year, an amount equal to the amount by which the aggregate of the costs it incurred to acquire the property in the year in which it acquired the property, except an amount incurred with a person with whom the corporation or a specified shareholder of the corporation does not deal at arm’s length, that are related to a business carried on by the corporation in the year in Québec, and that are included, at the end of that year, in the capital cost of the property, exceeds the aggregate of all amounts each of which is an amount of any 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 that year;

(b.4)  subject to the second paragraph of section 1137.2, where the corporation is, at the end of a taxation year, the owner of property described in the first paragraph of section 1137.5 as a consequence of the transfer of the property to the corporation in any of the circumstances described in section 130R71 of the Regulation respecting the Taxation Act (R.R.Q., 1981, chapter I-3, r.1), by a corporation, referred to as the “transferor” in this paragraph and in the second paragraph of section 1137.2, and the transferor would have been, had it been the owner of the property at the end of that year, entitled to deduct under paragraph b.3 an amount in computing its paid-up capital in respect of the property for its taxation year that includes the time of the transfer, an amount equal to the amount by which the amount that the transferor would have been entitled to so deduct in respect of the property under that paragraph b.3 in computing its paid-up capital for the year that includes the time of the transfer, exceeds the aggregate of all amounts each of which is an amount of government assistance or non-government assistance attributable to the property, 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 its taxation year;

(b.5)  an amount equal to 331/3% of the portion of its paid-up capital that would, but for this paragraph, be determined under sections 1136 to 1138 that

i.  the greater of

(1)  its gross revenue for the taxation year from a mineral resource owned or operated by it, and

(2)  the capital cost, to the corporation, of property acquired in the year in the course of a major expansion that results in any of the consequences described in subparagraphs 1 and 2 of subparagraph ii of subparagraph a of the first paragraph of Class 28 of Schedule B to the Regulation respecting the Taxation Act (R.R.Q., 1981, chapter I-3, r.1), that is added to the capital cost, to the corporation, of the property of Class 41 of that Schedule, is of

ii.  the aggregate of its gross revenue for that year and, where applicable, the amount by which the amount determined under subparagraph 2 of subparagraph i of this paragraph exceeds the amount determined under subparagraph 1 of that subparagraph;

(c)  (paragraph repealed);

(d)  where the corporation is a qualified corporation for the taxation year, any amount included by the corporation in that computation for the taxation year otherwise than under paragraph b.2 of subsection 1 of section 1136, to the extent that that amount is not otherwise deducted in that computation and is attributable to the eligible activities of a recognized business carried on by the corporation or by any partnership of which the corporation is a member, that are carried on during the base period applicable to the corporation or partnership, as the case may be, in respect of the eligible activities;

(e)  where the corporation is a qualified corporation for the taxation year and the amount of the corporation’s deficit is less than the amount that would be the corporation’s deficit, but for the eligible activities of any recognized business carried on by the corporation or by any partnership of which the corporation is a member, that are carried on during the base period applicable to the corporation or partnership, as the case may be, in respect of the eligible activities, an amount equal to the amount by which the amount that would be the corporation’s deficit, if no reference were made to the eligible activities, exceeds the amount deducted by the corporation in computing its paid-up capital for the taxation year under paragraph a.

1972, c. 23, s. 850; 1979, c. 38, s. 27; 1986, c. 15, s. 201; 1990, c. 7, s. 211; 1995, c. 63, s. 242; 1997, c. 3, s. 71; 1997, c. 14, s. 274; 1997, c. 31, s. 137; 1997, c. 85, s. 311; 1999, c. 8, s. 20; 1999, c. 83, s. 257; 1999, c. 86, s. 92; 2000, c. 39, s. 249; 2001, c. 7, s. 166; 2001, c. 51, s. 222; 2002, c. 40, s. 313; 2003, c. 9, s. 421; 2004, c. 21, s. 489; 2005, c. 38, s. 316; 2006, c. 8, s. 31; 2006, c. 13, s. 216.

2006-03-01

1137. In computing its paid-up capital, a corporation may deduct

(a)  the amount of its deficit;

(b)  the costs pertaining to the issue of shares or bonds, including discount, provided they were not used to reduce its surplus or its paid-up capital;

(b.1)  the amount of its future tax assets;

(b.1.1)  the amount of the corporation’s deferred unrealized foreign exchange losses at the end of the taxation year;

(b.1.2)  the amount determined for the taxation year under section 1137.0.0.2, unless the corporation is for that year a prescribed corporation for the purposes of subparagraph a of the first paragraph of section 1143;

(b.2)  where it holds, at the end of the taxation year, in respect of an eligible vessel, a valid certificate issued by the Minister of Economic and Regional Development and Research, where the taxation year is included in its deduction period, where the certificate attests that the eligible vessel is a vessel with a gross tonnage of at least 50 tons and where it encloses with the fiscal return it is required to file for the year under section 1000, by reason of section 1145, a copy of that certificate, the aggregate of

i.  the amount by which its eligible acquisition costs for the year in respect of the eligible vessel exceeds 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 can reasonably expect to receive on or before its filing-due date for that year, and

ii.  the aggregate of all amounts each of which is an amount paid by the corporation in the year, or in a preceding taxation year, as a repayment of assistance referred to in subparagraph i;

(b.2.1)  where it holds, at the end of the taxation year, in respect of an eligible vessel, a valid certificate issued by the Minister of Economic and Regional Development and Research, where the taxation year is included in its deduction period, where the certificate attests that the eligible vessel is a vessel with a gross tonnage of at least 50 tons and where it encloses with its fiscal return it is required to file for the year under section 1000, by reason of section 1145, a copy of that certificate, the aggregate of

i.  the amount by which its eligible conversion costs for the year in respect of the eligible vessel exceeds 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 its filing-due date for that year, and

ii.  the aggregate of all amounts each of which is an amount paid by the corporation in the year, or in a preceding taxation year, as a repayment of assistance referred to in subparagraph i;

(b.3)  subject to the first paragraph of section 1137.2, where the corporation is the owner at the end of a taxation year of property described in the first paragraph of section 1137.5 and where that year is the year in which it acquired the property or the year following that year, an amount equal to the amount by which the aggregate of the costs it incurred to acquire the property in the year in which it acquired the property, except an amount incurred with a person with whom the corporation or a specified shareholder of the corporation does not deal at arm’s length, that are related to a business carried on by the corporation in the year in Québec, and that are included, at the end of that year, in the capital cost of the property, exceeds the aggregate of all amounts each of which is an amount of any 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 that year;

(b.4)  subject to the second paragraph of section 1137.2, where the corporation is, at the end of a taxation year, the owner of property described in the first paragraph of section 1137.5 as a consequence of the transfer of the property to the corporation in any of the circumstances described in section 130R71 of the Regulation respecting the Taxation Act (R.R.Q., 1981, chapter I-3, r.1), by a corporation, referred to as the "transferor" in this paragraph and in the second paragraph of section 1137.2, and the transferor would have been, had it been the owner of the property at the end of that year, entitled to deduct under paragraph b.3 an amount in computing its paid-up capital in respect of the property for its taxation year that includes the time of the transfer, an amount equal to the amount by which the amount that the transferor would have been entitled to so deduct in respect of the property under that paragraph b.3 in computing its paid-up capital for the year that includes the time of the transfer, exceeds the aggregate of all amounts each of which is an amount of government assistance or non-government assistance attributable to the property, 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 its taxation year;

(b.5)  an amount equal to 33 1/3% of the portion of its paid-up capital that would, but for this paragraph, be determined under sections 1136 to 1138 that

i.  the greater of

(1)  its gross revenue for the taxation year from a mineral resource owned or operated by it, and

(2)  the capital cost, to the corporation, of property acquired in the year in the course of a major expansion that results in any of the consequences described in subparagraphs 1 and 2 of subparagraph ii of subparagraph a of the first paragraph of Class 28 of Schedule B to the Regulation respecting the Taxation Act (R.R.Q., 1981, chapter I-3, r.1), that is added to the capital cost, to the corporation, of the property of Class 41 of that Schedule, is of

ii.  the aggregate of its gross revenue for that year and, where applicable, the amount by which the amount determined under subparagraph 2 of subparagraph i of this paragraph exceeds the amount determined under subparagraph 1 of that subparagraph;

(c)  (paragraph repealed);

(d)  where the corporation is a qualified corporation for the taxation year, any amount included by the corporation in that computation for the taxation year otherwise than under paragraph b.2 of subsection 1 of section 1136, to the extent that that amount is not otherwise deducted in that computation and is attributable to the eligible activities of a recognized business carried on by the corporation or by any partnership of which the corporation is a member, that are carried on during the base period applicable to the corporation or partnership, as the case may be, in respect of the eligible activities;

(e)  where the corporation is a qualified corporation for the taxation year and the amount of the corporation’s deficit is less than the amount that would be the corporation’s deficit, but for the eligible activities of any recognized business carried on by the corporation or by any partnership of which the corporation is a member, that are carried on during the base period applicable to the corporation or partnership, as the case may be, in respect of the eligible activities, an amount equal to the amount by which the amount that would be the corporation’s deficit, if no reference were made to the eligible activities, exceeds the amount deducted by the corporation in computing its paid-up capital for the taxation year under paragraph a.

1972, c. 23, s. 850; 1979, c. 38, s. 27; 1986, c. 15, s. 201; 1990, c. 7, s. 211; 1995, c. 63, s. 242; 1997, c. 3, s. 71; 1997, c. 14, s. 274; 1997, c. 31, s. 137; 1997, c. 85, s. 311; 1999, c. 8, s. 20; 1999, c. 83, s. 257; 1999, c. 86, s. 92; 2000, c. 39, s. 249; 2001, c. 7, s. 166; 2001, c. 51, s. 222; 2002, c. 40, s. 313; 2003, c. 9, s. 421; 2004, c. 21, s. 489; 2005, c. 38, s. 316.