I-3 - Taxation Act

Section 217.20 Disposition versions

2013-06-05

217.20. Subject to section 217.22, if a corporation (other than a professional corporation) becomes a member of a partnership during a fiscal period of the partnership (in this section referred to as the “particular fiscal period”) that begins in the corporation’s taxation year and ends after the end of the taxation year but on or before its filing-due date for the taxation year and the corporation has a significant interest in the partnership at the end of the particular fiscal period, the corporation may include in computing its income for the taxation year the lesser of

(a)  the amount designated by the corporation in its fiscal return for the taxation year; and

(b)  the amount determined by the formula

A × B/C.

In the formula in subparagraph b of the first paragraph,

(a)  A is the corporation’s income from the partnership for the particular fiscal period (other than any amount in respect of which a deduction is available under sections 738 to 749);

(b)  B is the number of days that are both in the corporation’s taxation year and the particular fiscal period; and

(c)  C is the number of days in the particular fiscal period.

2013, c. 10, s. 21.