I-3 - Taxation Act

Section 1138.2.4 Disposition versions

2022-06-08

1138.2.4. (Repealed).

2003, c. 9, s. 429; 2004, c. 21, s. 494; 2022, c. 23, s. 152.

2006-03-01

1138.2.4. A corporation that is a qualified corporation for a taxation year, for the purposes of Title VII.2.6 of Book IV of Part I, may deduct from its paid-up capital otherwise determined for the year under this Title, an amount equal to 75% of the aggregate of all amounts each of which is, in relation to a recognized business of the corporation, the proportion of the amount that would be the corporation’s paid-up capital otherwise determined for the year under this Title if such capital were established on the sole basis of the financial statements referred to in subparagraph b of the second paragraph in relation to the recognized business, that the number of days in the year that are in the exemption period applicable to the corporation is of the number of days in the year.

However, a deduction is allowed under the first paragraph for a taxation year in respect of a recognized business of the corporation only if the corporation encloses, with the fiscal return it is required to file under section 1000 for the year, the following documents:

(a)  the prescribed form containing the prescribed information; and

(b)  the financial statements of the corporation prepared in accordance with generally accepted accounting principles but pertaining only to the eligible activities of the corporation’s recognized business.

The amounts reported in the financial statements of the corporation, referred to in subparagraph b of the second paragraph, must be the same as the amounts that, in respect of eligible activities referred to in that subparagraph, were taken into account in determining the amounts reported in the financial statements of the corporation, otherwise prepared under this Part.

2003, c. 9, s. 429; 2004, c. 21, s. 494.