I-3 - Taxation Act

Section 726.34 Disposition versions

2021-06-02

726.34. (Repealed).

2006, c. 36, s. 58; 2009, c. 15, s. 127; 2010, c. 3, s. 292; 2021, c. 14, s. 63.

2013-04-01

726.34. A qualified corporation that, at the end of a taxation year ending before 1 January 2010, is a certified forest producer under the Sustainable Forest Development Act (chapter A-18.1) in respect of a private woodlot, or is a member of a partnership that is such a certified forest producer in respect of a private woodlot at the end of a fiscal period of the partnership that ends in the year, may deduct in computing its taxable income for the year, if the qualified corporation encloses the documents described in the third paragraph with the fiscal return it is required to file for the year under section 1000, an amount not exceeding 80% of the portion of the qualified corporation’s income for the year that may reasonably be considered to be equal to the aggregate of

(a)  the amount determined by the formula

A - B; and

(b)  the amount determined by the formula

C - D.

In the formulas in the first paragraph,

(a)  A is the aggregate of all amounts each of which is the amount obtained by multiplying the qualified corporation’s income for the taxation year deriving from the qualified corporation’s eligible activities for the year in respect of a private woodlot by the proportion that the number of days in the year that are included in the qualified corporation’s eligibility period in respect of the private woodlot, is of the number of days in the year;

(b)  B is the aggregate of all amounts each of which is the amount obtained by multiplying the qualified corporation’s loss for the taxation year deriving from the qualified corporation’s eligible activities for the year in respect of a private woodlot by the proportion that the number of days in the year that are included in the qualified corporation’s eligibility period in respect of the private woodlot, is of the number of days in the year;

(c)  C is the aggregate of all amounts each of which is the amount obtained by multiplying the qualified corporation’s share of the partnership’s income for its fiscal period that ends in the year deriving from the partnership’s eligible activities for that fiscal period in respect of a private woodlot by the proportion that the number of days in the partnership’s fiscal period that are included in the partnership’s eligibility period in respect of the private woodlot, is of the number of days in the fiscal period; and

(d)  D is the aggregate of all amounts each of which is the amount obtained by multiplying the qualified corporation’s share of the partnership’s loss for its fiscal period that ends in the year deriving from the partnership’s eligible activities for that fiscal period in respect of a private woodlot by the proportion that the number of days in the partnership’s fiscal period that are included in the partnership’s eligibility period in respect of the private woodlot, is of the number of days in the fiscal period.

The documents to which the first paragraph refers are

(a)  the prescribed form containing the prescribed information; and

(b)  a copy of the valid qualification certificate issued to the qualified corporation or to the partnership, as the case may be, attesting to its capacity as a certified forest producer in respect of the private woodlot.

For the purposes of subparagraphs c and d of the second paragraph, the share, for a fiscal period of a partnership, of a qualified corporation that is a member of the partnership of the income or loss of the partnership deriving from the partnership’s eligible activities for the fiscal period in respect of a private woodlot, is equal to the agreed proportion of the income or loss in respect of the qualified corporation for the fiscal period.

2006, c. 36, s. 58; 2009, c. 15, s. 127; 2010, c. 3, s. 292.

2009-06-04

726.34. A qualified corporation that, at the end of a taxation year ending before 1 January 2010, is a certified forest producer under the Forest Act (chapter F-4.1) in respect of a private woodlot, or is a member of a partnership that is such a certified forest producer in respect of a private woodlot at the end of a fiscal period of the partnership that ends in the year, may deduct in computing its taxable income for the year, if the qualified corporation encloses the documents described in the third paragraph with the fiscal return it is required to file for the year under section 1000, an amount not exceeding 80% of the portion of the qualified corporation’s income for the year that may reasonably be considered to be equal to the aggregate of

(a)  the amount determined by the formula

A - B; and

(b)  the amount determined by the formula

C - D.

In the formulas in the first paragraph,

(a)  A is the aggregate of all amounts each of which is the amount obtained by multiplying the qualified corporation’s income for the taxation year deriving from the qualified corporation’s eligible activities for the year in respect of a private woodlot by the proportion that the number of days in the year that are included in the qualified corporation’s eligibility period in respect of the private woodlot, is of the number of days in the year;

(b)  B is the aggregate of all amounts each of which is the amount obtained by multiplying the qualified corporation’s loss for the taxation year deriving from the qualified corporation’s eligible activities for the year in respect of a private woodlot by the proportion that the number of days in the year that are included in the qualified corporation’s eligibility period in respect of the private woodlot, is of the number of days in the year;

(c)  C is the aggregate of all amounts each of which is the amount obtained by multiplying the qualified corporation’s share of the partnership’s income for its fiscal period that ends in the year deriving from the partnership’s eligible activities for that fiscal period in respect of a private woodlot by the proportion that the number of days in the partnership’s fiscal period that are included in the partnership’s eligibility period in respect of the private woodlot, is of the number of days in the fiscal period; and

(d)  D is the aggregate of all amounts each of which is the amount obtained by multiplying the qualified corporation’s share of the partnership’s loss for its fiscal period that ends in the year deriving from the partnership’s eligible activities for that fiscal period in respect of a private woodlot by the proportion that the number of days in the partnership’s fiscal period that are included in the partnership’s eligibility period in respect of the private woodlot, is of the number of days in the fiscal period.

The documents to which the first paragraph refers are

(a)  the prescribed form containing the prescribed information; and

(b)  a copy of the valid qualification certificate issued to the qualified corporation or to the partnership, as the case may be, attesting to its capacity as a certified forest producer in respect of the private woodlot.

For the purposes of subparagraphs c and d of the second paragraph, the share, for a fiscal period of a partnership, of a qualified corporation that is a member of the partnership of the income or loss of the partnership deriving from the partnership’s eligible activities for the fiscal period in respect of a private woodlot, is equal to the agreed proportion of the income or loss in respect of the qualified corporation for the fiscal period.

2006, c. 36, s. 58; 2009, c. 15, s. 127.

2006-12-06

726.34. A qualified corporation that, at the end of a taxation year ending before 1 January 2010, is a certified forest producer under the Forest Act (chapter F-4.1) in respect of a private woodlot, or is a member of a partnership that is such a certified forest producer in respect of a private woodlot at the end of a fiscal period of the partnership that ends in the year, may deduct in computing its taxable income for the year, if the qualified corporation encloses the documents described in the third paragraph with the fiscal return it is required to file for the year under section 1000, an amount not exceeding 80% of the portion of the qualified corporation’s income for the year that may reasonably be considered to be equal to the aggregate of

(a)  the amount determined by the formula

A − B; and

(b)  the amount determined by the formula

C − D.

In the formulas in the first paragraph,

(a)  A is the aggregate of all amounts each of which is the amount obtained by multiplying the qualified corporation’s income for the taxation year deriving from the qualified corporation’s eligible activities for the year in respect of a private woodlot by the proportion that the number of days in the year that are included in the qualified corporation’s eligibility period in respect of the private woodlot, is of the number of days in the year;

(b)  B is the aggregate of all amounts each of which is the amount obtained by multiplying the qualified corporation’s loss for the taxation year deriving from the qualified corporation’s eligible activities for the year in respect of a private woodlot by the proportion that the number of days in the year that are included in the qualified corporation’s eligibility period in respect of the private woodlot, is of the number of days in the year;

(c)  C is the aggregate of all amounts each of which is the qualified corporation’s share of the amount obtained by multiplying the partnership’s income for its fiscal period that ends in the year deriving from the partnership’s eligible activities for that fiscal period in respect of a private woodlot by the proportion that the number of days in the partnership’s fiscal period that are included in the partnership’s eligibility period in respect of the private woodlot, is of the number of days in the fiscal period; and

(d)  D is the aggregate of all amounts each of which is the qualified corporation’s share of the amount obtained by multiplying the partnership’s loss for its fiscal period that ends in the year deriving from the partnership’s eligible activities for that fiscal period in respect of a private woodlot by the proportion that the number of days in the partnership’s fiscal period that are included in the partnership’s eligibility period in respect of the private woodlot, is of the number of days in the fiscal period.

The documents to which the first paragraph refers are

(a)  the prescribed form containing the prescribed information; and

(b)  a copy of the valid qualification certificate issued to the qualified corporation or to the partnership, as the case may be, attesting to its capacity as a certified forest producer in respect of the private woodlot.

For the purposes of subparagraphs c and d of the second paragraph, the share, for a fiscal period of a partnership, of a qualified corporation that is a member of the partnership of the income or loss of the partnership deriving from the partnership’s eligible activities for the fiscal period in respect of a private woodlot, is equal to the proportion of that income or loss that the qualified corporation’s share of the income or loss of the partnership for the partnership’s fiscal period that ends in the qualified corporation’s taxation year, is of the income or loss of the partnership for the fiscal period, on the assumption that, if the income and loss of the partnership for the fiscal period are nil, the partnership’s income for the fiscal period is equal to $1,000,000.

2006, c. 36, s. 58.