I-3 - Taxation Act

Section 1178 Disposition versions

2009-06-04

1178. For the purposes of this Part,

(a)  the income of a taxpayer from logging operations for a taxation year is equal to the excess of the aggregate of all his income over the aggregate of his losses, determined in the following manner:

i.  when the taxpayer carries on the operations described in subparagraph a of the first paragraph of section 1177, the taxpayer’s income or loss, as determined under Part I for the year, from the cutting, acquiring, transportation and sale of forest products,

ii.  when the taxpayer carries on the operations described in subparagraph b of the first paragraph of section 1177, the taxpayer’s income or loss, as determined under Part I for the year, from the cutting, acquiring, transportation and sale of forest products, computed on the value of the forest products sold as established by the Minister, less the cost of cutting, acquisition, transportation and sale,

iii.  subject to subparagraph iii.1, when the taxpayer carries on the operations described in subparagraph c of the first paragraph of section 1177, the taxpayer’s income or loss, as determined under Part I for the year, from such operations,

iii.1.  where subparagraph iii applies in respect of the sale by the taxpayer of forest land or a timber limit, the income or loss referred to in that subparagraph iii in respect of that sale is deemed, except for the purposes of subparagraph iv, to be equal to the portion of the income or loss of the taxpayer, determined under Part I for the year, from the sale that can reasonably be attributed to standing timber,

iv.  when the taxpayer carries on the operations described in subparagraph d of the first paragraph of section 1177, the taxpayer’s income or loss from all sources, as determined under Part I, without taking into account any amount included or deducted in computing the income or loss contemplated in subparagraphs i to iii or from sources other than logging operations and the processing in Québec by him or on his behalf, transportation and sale of forest products, timber and products derived therefrom, minus the deduction described in subparagraph v,

v.  a taxpayer may deduct from the income determined under subparagraph iv an amount equal to 8% of the original cost to him of the depreciable property under Part I used by him during the year for the processing of forest products or products derived therefrom; but such amount shall not be less than 35% nor more than 65% of that income before the deduction under this subparagraph, and

vi.  when subparagraph iv applies and the taxpayer cuts standing timber outside Québec or acquires forest products derived therefrom, he may deduct from the income resulting from the application of subparagraph iv a portion equal to such proportion that the quantity of such timber cut outside Québec and of the forest products derived therefrom is of the total quantity of standing timber cut and forest products acquired by him during the year; and

(b)  a taxpayer’s share in the income of a partnership carrying on logging operations of which the taxpayer is a member is equal to the agreed proportion of the income (computed under paragraph a as if the partnership were, for the purposes of subparagraph d of the first paragraph of section 1177 and of this section, a taxpayer and as if paragraphs a to c and g of section 600 applied to this Part) in respect of the taxpayer for the partnership’s fiscal period that ends in the taxpayer’s taxation year.

1972, c. 23, s. 887; 1975, c. 22, s. 252; 1990, c. 59, s. 365; 1993, c. 64, s. 206; 1995, c. 63, s. 259; 1997, c. 3, s. 71; 1997, c. 14, s. 287; 2004, c. 21, s. 503; 2009, c. 15, s. 458.

2006-03-01

1178. For the purposes of this Part,

(a)  the income of a taxpayer from logging operations for a taxation year is equal to the excess of the aggregate of all his income over the aggregate of his losses, determined in the following manner:

i.  when the taxpayer carries on the operations described in subparagraph a of the first paragraph of section 1177, the taxpayer’s income or loss, as determined under Part I for the year, from the cutting, acquiring, transportation and sale of forest products,

ii.  when the taxpayer carries on the operations described in subparagraph b of the first paragraph of section 1177, the taxpayer’s income or loss, as determined under Part I for the year, from the cutting, acquiring, transportation and sale of forest products, computed on the value of the forest products sold as established by the Minister, less the cost of cutting, acquisition, transportation and sale,

iii.  subject to subparagraph iii.1, when the taxpayer carries on the operations described in subparagraph c of the first paragraph of section 1177, the taxpayer’s income or loss, as determined under Part I for the year, from such operations,

iii.1.  where subparagraph iii applies in respect of the sale by the taxpayer of forest land or a timber limit, the income or loss referred to in that subparagraph iii in respect of that sale is deemed, except for the purposes of subparagraph iv, to be equal to the portion of the income or loss of the taxpayer, determined under Part I for the year, from the sale that can reasonably be attributed to standing timber,

iv.  when the taxpayer carries on the operations described in subparagraph d of the first paragraph of section 1177, the taxpayer’s income or loss from all sources, as determined under Part I, without taking into account any amount included or deducted in computing the income or loss contemplated in subparagraphs i to iii or from sources other than logging operations and the processing in Québec by him or on his behalf, transportation and sale of forest products, timber and products derived therefrom, minus the deduction described in subparagraph v,

v.  a taxpayer may deduct from the income determined under subparagraph iv an amount equal to 8% of the original cost to him of the depreciable property under Part I used by him during the year for the processing of forest products or products derived therefrom; but such amount shall not be less than 35% nor more than 65% of that income before the deduction under this subparagraph, and

vi.  when subparagraph iv applies and the taxpayer cuts standing timber outside Québec or acquires forest products derived therefrom, he may deduct from the income resulting from the application of subparagraph iv a portion equal to such proportion that the quantity of such timber cut outside Québec and of the forest products derived therefrom is of the total quantity of standing timber cut and forest products acquired by him during the year; and

(b)  the share of a taxpayer in the income of a partnership carrying on logging operations of which he is a member is equal to such proportion of the income of the partnership, computed under paragraph a as if the partnership were, for the purposes of subparagraph d of the first paragraph of section 1177 and of this section, a taxpayer and as if paragraphs a to c and g of section 600 applied to this Part, as the share of the taxpayer of the income or loss of the partnership, for the fiscal period of the partnership ending in his taxation year, is of the income or loss of the 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.

1972, c. 23, s. 887; 1975, c. 22, s. 252; 1990, c. 59, s. 365; 1993, c. 64, s. 206; 1995, c. 63, s. 259; 1997, c. 3, s. 71; 1997, c. 14, s. 287; 2004, c. 21, s. 503.