I-3 - Taxation Act

Section 418.1.10 Disposition versions

2006-03-01

418.1.10. In computing a taxpayer’s income for a taxation year throughout which the taxpayer is resident in Canada, the taxpayer may deduct an amount claimed by the taxpayer, in respect of a country other than Canada, not exceeding the total of

(a)  the greater of

i.  10% of an amount, in this section referred to as a “particular amount”, equal to the taxpayer’s adjusted cumulative foreign resource expense in relation to that country at the end of the year, and

ii.  the least of

(1)  if the taxpayer ceases to be resident in Canada immediately after the end of the year, the particular amount,

(2)  if subparagraph 1 does not apply, 30% of the particular amount,

(3)  the amount by which the taxpayer’s foreign resource income for the year in relation to that country exceeds the portion of the amount, deducted under section 371 in computing the taxpayer’s income for the year, that is attributable to a source in that country, and

(4)   the amount by which the aggregate of all amounts each of which is the taxpayer’s foreign resource income for the year in relation to a country exceeds the total of the aggregate of all amounts each of which is the taxpayer’s foreign resource loss for the year in relation to a country and the amount deducted under section 371 in computing the taxpayer’s income for the year; and

(b)  the lesser of

i.  the amount by which the particular amount exceeds the amount determined for the year under paragraph a in respect of the taxpayer, and

ii.  that portion of the taxpayer’s global foreign resource limit for the year that is designated for the year by the taxpayer, in relation to that country and no other country, in prescribed form filed with the Minister with the taxpayer’s fiscal return filed under this Part for the year.

2004, c. 8, s. 79.