I-3 - Taxation Act

Section 225.1 Disposition versions

2017-02-08

225.1. Where a taxpayer is, at any time before the end of a taxation year of the taxpayer, last subject to a loss restriction event, the amount determined for the purposes of paragraph d of section 225 for the year in respect of the taxpayer is the amount obtained by subtracting the amount determined under the third paragraph from the amount determined by the formula

A – B – C.

In the formula in the first paragraph,

(a)  A is the aggregate of all amounts each of which is

i.  an expenditure described in section 222 that was made by the taxpayer before that time or an expenditure described in section 224, where that section refers to an expenditure made as repayment of an amount described in paragraph b of section 225 that was made by the taxpayer before that time,

ii.  the lesser of the amounts determined immediately before that time in respect of the taxpayer under paragraphs a and b of section 223, as those paragraphs read on 29 March 2012 in respect of expenditures made, and property acquired, by the taxpayer before 1 January 2014, or

iii.  an amount determined in respect of the taxpayer for its taxation year ending immediately before that time under section 224, where that section refers to an amount included, under paragraph t of section 87, in computing its income for a preceding taxation year;

(b)  B is the aggregate of all amounts each of which is

i.  the aggregate of all amounts determined in respect of the taxpayer under paragraphs a to c of section 225 for its taxation year ending immediately before that time, or

ii.  the amount deducted under sections 222 to 225 in computing the taxpayer’s income for its taxation year ending immediately before that time; and

(c)  C is the aggregate of

i.  where the business to which the amounts described in any of subparagraphs i to iii of subparagraph a may reasonably be considered to relate was carried on by the taxpayer for profit or with a reasonable expectation of profit throughout the year, the aggregate of

(1)  the taxpayer’s income for the year from the business before making any deduction under sections 222 to 225, and

(2)  where properties were sold, leased, rented or developed, or services were rendered, in the course of carrying on the business before that time, the taxpayer’s income for the year, before making any deduction under sections 222 to 225, from any other business substantially all the income of which was derived from the sale, leasing, rental or development, as the case may be, of similar properties or the rendering of similar services, and

ii.  the aggregate of all amounts each of which is an amount determined in respect of a preceding taxation year of the taxpayer that ended after that time equal to the lesser of

(1)  the amount determined under subparagraph i in respect of the taxpayer in respect of the business for that preceding taxation year, and

(2)  the amount in respect of the business deducted under sections 222 to 225 in computing the taxpayer’s income for that preceding taxation year.

1989, c. 5, s. 52; 1997, c. 3, s. 71; 2015, c. 21, s. 139; 2017, c. 1, s. 104.

2015-10-21

225.1. Where a taxpayer is a corporation control of which was last acquired by a person or group of persons at any time before the end of a taxation year of the corporation, the amount determined for the purposes of paragraph d of section 225 for the year with respect to the corporation is the amount obtained by subtracting the amount determined under the second paragraph from the amount by which

(a)  the aggregate of all amounts each of which is

i.  an expenditure described in section 222 that was made by the corporation before that time or an expenditure described in section 224, where that section refers to an expenditure made as repayment of an amount described in paragraph b of section 225 that was made by the corporation before that time;

ii.  the lesser of the amounts determined immediately before that time in respect of the corporation under paragraphs a and b of section 223, as those paragraphs read on 29 March 2012 in respect of expenditures made, and property acquired, by the corporation before 1 January 2014;

iii.  an amount determined in respect of the corporation for its taxation year ending immediately before that time under section 224, where that section refers to an amount included, under paragraph t of section 87, in computing its income for a preceding taxation year, exceeds

(b)  the aggregate of all amounts each of which is

i.  the aggregate of all amounts determined in respect of the corporation under paragraphs a to c of section 225 for its taxation year ending immediately before that time;

ii.  the amount deducted by virtue of sections 222 to 225 in computing the corporation’s income for its taxation year ending immediately before that time.

The amount referred to in the first paragraph is equal to the aggregate of

(a)  where the business to which the amounts referred to in any of paragraphs i, ii and iii of subparagraph a of the first paragraph may reasonably be considered to relate was carried on by the corporation for profit or with a reasonable expectation of profit throughout the year, the aggregate of

i.  the corporation’s income for the year from the business before making any deduction under sections 222 to 225; and

ii.  where properties were sold, leased, rented or developed, or services were rendered, in the course of carrying on the business before the time referred to in the first paragraph, the corporation’s income for the year, before making any deduction under sections 222 to 225, from any other business substantially all the income of which was derived from the sale, leasing, rental or development, as the case may be, of similar properties or the rendering of similar services; and

(b)  the aggregate of all amounts each of which is an amount determined in respect of a preceding taxation year of the corporation that ended after the time referred to in the first paragraph equal to the lesser of

i.  the amount determined under subparagraph a with respect to the corporation in respect of the business for that preceding taxation year; and

ii.  the amount in respect of the business deducted by virtue of sections 222 to 225 in computing the corporation’s income for that preceding taxation year.

1989, c. 5, s. 52; 1997, c. 3, s. 71; 2015, c. 21, s. 139.

2006-03-01

225.1. Where a taxpayer is a corporation control of which was last acquired by a person or group of persons at any time before the end of a taxation year of the corporation, the amount determined for the purposes of paragraph d of section 225 for the year with respect to the corporation is the amount obtained by subtracting the amount determined under the second paragraph from the amount by which

(a)  the aggregate of all amounts each of which is

i.  an expenditure described in section 222 that was made by the corporation before that time or an expenditure described in section 224, where that section refers to an expenditure made as repayment of an amount described in paragraph b of section 225 that was made by the corporation before that time;

ii.  the lesser of the amounts determined in respect of the corporation under paragraphs a and b of section 223 immediately before that time;

iii.  an amount determined in respect of the corporation for its taxation year ending immediately before that time under section 224, where that section refers to an amount included, under paragraph t of section 87, in computing its income for a preceding taxation year, exceeds

(b)  the aggregate of all amounts each of which is

i.  the aggregate of all amounts determined in respect of the corporation under paragraphs a to c of section 225 for its taxation year ending immediately before that time;

ii.  the amount deducted by virtue of sections 222 to 225 in computing the corporation’s income for its taxation year ending immediately before that time.

The amount referred to in the first paragraph is equal to the aggregate of

(a)  where the business to which the amounts referred to in any of paragraphs i, ii and iii of subparagraph a of the first paragraph may reasonably be considered to relate was carried on by the corporation for profit or with a reasonable expectation of profit throughout the year, the aggregate of

i.  the corporation’s income for the year from the business before making any deduction under sections 222 to 225; and

ii.  where properties were sold, leased, rented or developed, or services were rendered, in the course of carrying on the business before the time referred to in the first paragraph, the corporation’s income for the year, before making any deduction under sections 222 to 225, from any other business substantially all the income of which was derived from the sale, leasing, rental or development, as the case may be, of similar properties or the rendering of similar services; and

(b)  the aggregate of all amounts each of which is an amount determined in respect of a preceding taxation year of the corporation that ended after the time referred to in the first paragraph equal to the lesser of

i.  the amount determined under subparagraph a with respect to the corporation in respect of the business for that preceding taxation year; and

ii.  the amount in respect of the business deducted by virtue of sections 222 to 225 in computing the corporation’s income for that preceding taxation year.

1989, c. 5, s. 52; 1997, c. 3, s. 71.