I-3 - Taxation Act

Section 726.43 Disposition versions

2021-06-02

726.43. A taxpayer who deducted an amount in computing taxable income for a particular taxation year under section 726.42, all or part of which may reasonably be considered to derive from recognized commercial activities in respect of a private forest carried on before 10 March 2020 (the amount or part of the amount being in this section referred to as the “particular amount”), shall include, in computing taxable income for each taxation year (in this paragraph referred to as an “inclusion year”) that is one of the six taxation years that follow the particular year, except a taxation year for which the taxpayer is required to include an amount in computing taxable income under subparagraph a of the first or second paragraph of section 726.43.2 in respect of the particular amount, an amount at least equal to 10% of the particular amount unless, for the inclusion year, that minimum amount is greater than the excess amount that corresponds to the amount by which the particular amount exceeds the aggregate of all amounts each of which is an amount that the taxpayer included in computing taxable income in respect of the particular amount under this section or subparagraph a of the first or second paragraph of section 726.43.2 for a taxation year preceding the inclusion year, in which case the taxpayer shall include the excess amount in computing taxable income for the inclusion year.

The taxpayer to which the first paragraph refers shall include, in computing taxable income for the seventh taxation year that follows the particular year, an amount equal to the amount by which the particular amount exceeds the aggregate of all amounts each of which is an amount that the taxpayer included, under this section or subparagraph a of the first or second paragraph of section 726.43.2, in computing taxable income, in respect of the particular amount, for a preceding taxation year.

2017, c. 29, s. 112; 2021, c. 14, s. 65.

2017-12-07

726.43. A taxpayer who deducted a particular amount in computing taxable income for a particular taxation year under section 726.42, as a certified forest producer under the Sustainable Forest Development Act (chapter A-18.1) in respect of a private forest, or as a member of a partnership that is such a certified forest producer in respect of a private forest, shall include in computing taxable income for each taxation year (in this paragraph referred to as an “inclusion year”) that is one of the six taxation years that follow the particular year, except a taxation year for which the taxpayer is required to include an amount in computing taxable income under the second or third paragraph in respect of the particular amount, an amount at least equal to 10% of the particular amount unless, for the inclusion year, that minimum amount is greater than the excess amount that corresponds to the amount by which the particular amount exceeds the aggregate of all amounts each of which is an amount that the taxpayer included in computing taxable income in respect of the particular amount under this section for a taxation year preceding the inclusion year or under the second or third paragraph for the inclusion year, in which case the taxpayer shall include the excess amount in computing taxable income for the inclusion year.

Where the particular amount that the taxpayer referred to in the first paragraph deducted for the particular year is in respect of a single private forest, the taxpayer shall include in computing taxable income for a taxation year referred to in the fourth paragraph an amount equal to the amount by which the particular amount exceeds the aggregate of all amounts each of which is an amount that the taxpayer included, in computing taxable income, in respect of the particular amount, under the first paragraph, for a taxation year preceding the year referred to in the fourth paragraph.

Where the particular amount that the taxpayer referred to in the first paragraph deducted for the particular year is in respect of more than one private forest, the taxpayer shall include in computing taxable income for a taxation year referred to in the fourth paragraph (in this paragraph referred to as the “year concerned”) an amount equal to the greater of the amount that the taxpayer should include in respect of the particular amount, under the first paragraph, for the year concerned but for this paragraph, and the lesser of the proportion, described in the fifth paragraph, of the particular amount and the amount by which the particular amount exceeds the aggregate of all amounts each of which is an amount that the taxpayer included in respect of the particular amount in computing taxable income, under this section, for a taxation year preceding the year concerned.

A taxation year referred to in the second or third paragraph is one of the six taxation years that follow the particular year and is

(a)  the taxation year in which the taxpayer disposes of a private forest referred to in that paragraph;

(b)  the taxation year in which ends a partnership’s fiscal period in which the partnership disposes of a private forest referred to in that paragraph; or

(c)  the taxation year in which the taxpayer ceases to be a member of a partnership referred to in the first paragraph.

The proportion to which the third paragraph refers is the proportion that the aggregate of all amounts each of which is an amount referred to in subparagraph a or c of the second paragraph of section 726.42 for the particular year in relation to a private forest in respect of which any of subparagraphs a to c of the fourth paragraph applies is of the aggregate of all amounts each of which is an amount referred to in subparagraph a or c of the second paragraph of section 726.42 for the particular year in relation to a private forest.

The taxpayer to which the first paragraph refers shall include in computing taxable income for the seventh taxation year that follows the particular year an amount equal to the amount by which the particular amount exceeds the aggregate of all amounts each of which is an amount that the taxpayer included, under any of the first, second and third paragraphs, in computing taxable income, in respect of the particular amount, for a preceding taxation year.

2017, c. 29, s. 112.