I-3 - Taxation Act

Section 150.2 Disposition versions

2021-06-04

150.2. In computing income for a taxation year, a taxpayer may deduct the undepreciated amount at the end of the taxation year in respect of the amount received in excess of the principal amount of a bond (in this section referred to as the “premium”) which the taxpayer received as an issuer in the year, or a previous year, for issuing the bond (in this section referred to as the “new bond”) if

(a)  the terms of the new bond are identical to the terms of bonds previously issued by the taxpayer (in this section referred to as the “old bonds”), except for the date of issuance and total principal amount of the bonds;

(b)  the old bonds were part of an issuance (in this section referred to as the “original issuance”) of bonds by the taxpayer;

(c)  the interest rate on the old bonds was reasonable at the time of the original issuance;

(d)  the new bond is issued on the reopening of the original issuance;

(e)  the amount of the premium at the time of issuance of the new bond is reasonable; and

(f)  the amount of the premium has been included in computing the taxpayer’s income for the year or a previous year.

2021, c. 18, s. 30.