I-3 - Taxation Act

Section 217.27 Disposition versions

2015-10-26

217.27. Where a corporation has qualifying transitional income in respect of a partnership for a particular taxation year, the following rules apply:

(a)  the corporation may, in computing its income for the particular year, claim an amount, as a reserve, not exceeding the least of

i.  the specified percentage for the particular year of the corporation’s qualifying transitional income in respect of the partnership,

ii.  if, for the preceding taxation year, an amount was claimed under this section in computing the corporation’s income in respect of the partnership, the amount that is the aggregate of

(1)  the amount included under section 217.28 in computing the corporation’s income for the particular year in respect of the partnership, and

(2)  the amount by which the corporation’s qualifying transitional income in respect of the partnership is increased in the particular year because of the application of sections 217.32 and 217.33, and

iii.  the amount determined by the formula

A - B;

(b)  the portion of the amount claimed under subparagraph a for the particular year that, because of subparagraph iv of paragraph a of section 217.22, has a character other than capital is deductible in computing the income of the corporation for the particular year; and

(c)  the portion of the amount claimed under subparagraph a for the particular year that, because of subparagraph iv of paragraph a of section 217.22, has the character of capital is deemed to be an allowable capital loss for the particular year from the disposition of property.

In the formula in subparagraph iii of subparagraph a of the first paragraph,

(a)  A is the corporation’s income for the particular year computed before deducting or claiming any amount under this section in respect of the partnership or under sections 346.2 to 346.4; and

(b)  B is the aggregate of all amounts each of which is an amount deductible by the corporation for the year under sections 738 to 749 as a dividend received by the corporation after 20 December 2012.

2013, c. 10, s. 21; 2015, c. 24, s. 46.

2013-06-05

217.27. A corporation that has qualifying transitional income in respect of a partnership for a particular taxation year may deduct in computing its income, as a reserve, for the particular year such amount as the corporation claims not exceeding the least of

(a)  the specified percentage for the particular year of the corporation’s qualifying transitional income in respect of the partnership;

(b)  if, for the preceding taxation year, an amount was deductible under this section in computing the corporation’s income in respect of the partnership, the amount that is the aggregate of

i.  the amount included under section 217.28 in computing the corporation’s income for the particular year in respect of the partnership, and

ii.  the amount by which the corporation’s qualifying transitional income in respect of the partnership is increased in the particular year because of the application of sections 217.32 and 217.33; and

(c)  the corporation’s income for the particular year computed before deducting any amount under this section in respect of the partnership or under sections 346.2 to 346.4.

2013, c. 10, s. 21.