I-3 - Taxation Act

Section 191.2 Disposition versions

2006-03-01

191.2. A bank may deduct in computing its income for a taxation year an amount not exceeding the aggregate of

(a)  that part, that is specified by the bank for the year and was not deducted by the bank in computing its income for any preceding taxation year, of the aggregate of the amounts of the five-year average loan loss experiences of the bank, as determined, or as would have been determined if such a determination had been required, under the Minister’s rules, for all taxation years before its first year,

(b)  that part, that is specified by the bank for the year and was not deducted by the bank in computing its income for any preceding taxation year, of the aggregate of the amounts transferred by the bank to its tax allowable appropriations account, as permitted under the Minister’s rules, for all taxation years before its first year,

(c)  that part, that is specified by the bank for the year and was not deducted by the bank in computing its income for any preceding taxation year, of the amount by which

i.  the amount of the special provision for losses on transborder claims, as determined, or as would have been determined if such a determination had been required, under the Minister’s rules, that was deductible by the bank under section 191 in computing its income for its last taxation year before its first year, exceeds

ii.  that part of the amount determined under subparagraph i that was a realized loss of the bank for its last taxation year before its first year,

(d)  where the tax allowable appropriations account of the bank at the end of its last taxation year before its first year, as determined, or as would have been determined if such a determination had been required, under the Minister’s rules, is a negative amount, that part of such amount expressed as a positive number that is specified by the bank for the year and was not deducted by the bank in computing its income for any preceding taxation year, and

(e)  that part, that is specified by the bank for the year and was not deducted by the bank in computing its income for any preceding taxation year, of the aggregate of the amounts calculated in respect of the bank for the purposes of the Minister’s rules, or that would have been calculated if such a calculation had been required, under Procedure 8 of the Procedures for the Determination of the Provision for Loan Losses as set out in Appendix 1 of those rules, for all taxation years before its first year.

1990, c. 59, s. 106; 1995, c. 63, s. 32.