I-3 - Taxation Act

Section 486 Disposition versions

2015-10-26

486. For the application of this Part, except this section, to a taxation year that ends on or before 31 December 2006, where a taxpayer, under a contract, pays to another person a particular amount that may reasonably be considered to have been received by the other person as a reimbursement, contribution or allowance in respect of an amount paid or payable by the other person, the latter amount is included in computing the income of that other person under section 89 or is not deductible in computing the income of such other person because of section 144 and the taxpayer, at the time of payment of the particular amount, was resident in Canada or carrying on business in Canada, the following rules apply:

(a)  the taxpayer is deemed neither to have paid nor to have become obligated to pay the particular amount to the other person but to have paid an amount contemplated in section 144 equal to the particular amount;

(b)  the other person is deemed neither to have received nor to have become entitled to receive the particular amount from the taxpayer.

1975, c. 22, s. 108; 1977, c. 26, s. 57; 1978, c. 26, s. 81; 1991, c. 25, s. 78; 2005, c. 1, s. 115; 2015, c. 24, s. 77.

2006-03-01

486. For the application of this Part, except this section, to a taxation year that begins before 1 January 2007, where a taxpayer, under a contract, pays to another person a particular amount that may reasonably be considered to have been received by the other person as a reimbursement, contribution or allowance in respect of an amount paid or payable by the other person, the latter amount is included in computing the income of that other person under section 89 or denied as a deduction in computing the income of such other person because of section 144 and the taxpayer, at the time of payment of the particular amount, was resident in Canada or carrying on business in Canada, the following rules apply:

(a)  the taxpayer is deemed neither to have paid nor to have become obligated to pay the particular amount to the other person but to have paid an amount contemplated in section 144 equal to the particular amount;

(b)  the other person is deemed neither to have received nor to have become entitled to receive the particular amount from the taxpayer.

1975, c. 22, s. 108; 1977, c. 26, s. 57; 1978, c. 26, s. 81; 1991, c. 25, s. 78; 2005, c. 1, s. 115.