I-3 - Taxation Act

Section 217.35 Disposition versions

2013-06-05

217.35. In this subdivision,

“actual stub period accrual”, of a corporation in respect of a qualifying partnership for a taxation year, means the positive or negative amount determined by the formula

(A - B) × C/D - E;

“base year”, of a corporation in respect of a qualifying partnership for a taxation year, means the preceding taxation year of the corporation in which began a fiscal period of the partnership that ends in the corporation’s taxation year;

“income shortfall adjustment”, of a corporation in respect of a qualifying partnership for a particular taxation year, means the positive or negative amount determined by the formula

(F - G) × H × I;

“qualifying partnership”, in respect of a corporation for a particular taxation year, means a partnership a fiscal period of which began in a preceding taxation year and ends in the particular taxation year, and in respect of which the corporation was required to calculate an adjusted stub period accrual for the preceding taxation year.

In the formulas in the definitions of “actual stub period accrual” and “income shortfall adjustment” in the first paragraph,

(a)  A is the aggregate of all amounts each of which is the corporation’s share of an income or taxable capital gain of the qualifying partnership for the last fiscal period of the partnership that began in the base year (other than any amount in respect of which a deduction was available under sections 738 to 749);

(b)  B is the aggregate of all amounts each of which is the corporation’s share of a loss or allowable capital loss of the qualifying partnership for the last fiscal period of the partnership that began in the base year (to the extent that the total of all allowable capital losses included in the aggregate described in this subparagraph in respect of all qualifying partnerships for the taxation year does not exceed the corporation’s share of all taxable capital gains of all qualifying partnerships for the taxation year);

(c)  C is the number of days that are in both the base year and the fiscal period;

(d)  D is the number of days in the fiscal period;

(e)  E is the amount of the qualified resource expense in respect of the qualifying partnership that was designated by the corporation for the base year under section 217.23 in its fiscal return for the base year filed with the Minister on or before its filing-due date for the base year;

(f)  F is the amount that is the lesser of

i.  the actual stub period accrual in respect of the qualifying partnership, and

ii.  the amount that would be the corporation’s adjusted stub period accrual for the base year in respect of the qualifying partnership if, for the purposes of paragraph a of the definition of “adjusted stub period accrual” in the first paragraph of section 217.18, the amount determined under subparagraph f of the second paragraph of that section were equal to zero;

(g)  G is the amount included under section 217.19 in computing the corporation’s income for the base year in respect of the qualifying partnership;

(h)  H is the number of days in the period that begins on the day after the day on which the base year ends and ends on the day on which the taxation year ends; and

(i)  I is the average daily rate of interest determined by reference to the rate of interest prescribed under section 28 of the Tax Administration Act (chapter A-6.002) for the period referred to in subparagraph h.

2013, c. 10, s. 21.