I-3 - Taxation Act

Section 733.0.5 Disposition versions

2021-01-01

733.0.5. For the purpose of determining the amount of the non-capital loss, farm loss, net capital loss or limited partnership loss for a taxation year of a corporation that carries on a recognized business in the year or is a member of a partnership that carries on such a recognized business in a fiscal period of the partnership ending in the year, in relation to a major investment project of the corporation or partnership, in respect of which the Minister of Finance issued an annual qualification certificate for the taxation year of the corporation or fiscal period of the partnership, the following rules apply:

(a)  where the amount determined under subparagraph a of the second paragraph of section 737.18.17 in respect of the corporation for the year exceeds the amount determined under subparagraph b of that paragraph in its respect for the year,

i.  the amount that is the income or portion of the income of the corporation for the year, determined under subparagraph a of the second paragraph of section 737.18.17, is deemed to be nil, and

ii.  the amount that is the loss or portion of the loss of the corporation for the year, determined under subparagraph b of the second paragraph of section 737.18.17, is deemed to be nil; and

(b)  where the amount determined under subparagraph d of the second paragraph of section 737.18.17 in respect of the partnership for the fiscal period exceeds the amount determined under subparagraph e of that paragraph in respect of the partnership for the fiscal period,

i.  the corporation’s share of the amount that is the income or portion of the income, determined under subparagraph d of the second paragraph of section 737.18.17 in respect of the partnership for the fiscal period, is deemed to be nil, and

ii.  the corporation’s share of the amount that is the loss or portion of the loss, determined under subparagraph e of the second paragraph of section 737.18.17 in respect of the partnership for the fiscal period, is deemed to be nil.

For the purposes of the first paragraph, a corporation’s share of an amount is equal to the proportion of that amount that the corporation’s share of the partnership’s income for the fiscal period is of the partnership’s income for that fiscal period.

In this section, the following rules apply:

(a)  “annual qualification certificate”, “major investment project” and “recognized business” have the meaning assigned by the first paragraph of section 737.18.14, as it read before being repealed; and

(b)  a reference to section 737.18.17 is a reference to that section as it read before being repealed.

2002, c. 9, s. 12; 2004, c. 21, s. 131; 2019, c. 14, s. 193.

2006-03-01

733.0.5. For the purpose of determining the amount of the non-capital loss, farm loss, net capital loss or limited partnership loss for a taxation year of a corporation that carries on a recognized business in the year or is a member of a partnership that carries on such a recognized business in a fiscal period of the partnership ending in the year, in relation to a major investment project of the corporation or partnership, in respect of which the Minister of Finance issued an annual qualification certificate for the taxation year of the corporation or fiscal period of the partnership, the following rules apply:

(a)  where the amount determined under subparagraph a of the second paragraph of section 737.18.17 in respect of the corporation for the year exceeds the amount determined under subparagraph b of that paragraph in its respect for the year,

i.  the amount that is the income or portion of the income of the corporation for the year, determined under subparagraph a of the second paragraph of section 737.18.17, is deemed to be nil, and

ii.  the amount that is the loss or portion of the loss of the corporation for the year, determined under subparagraph b of the second paragraph of section 737.18.17, is deemed to be nil; and

(b)  where the amount determined under subparagraph d of the second paragraph of section 737.18.17 in respect of the partnership for the fiscal period exceeds the amount determined under subparagraph e of that paragraph in respect of the partnership for the fiscal period,

i.  the corporation’s share of the amount that is the income or portion of the income, determined under subparagraph d of the second paragraph of section 737.18.17 in respect of the partnership for the fiscal period, is deemed to be nil, and

ii.  the corporation’s share of the amount that is the loss or portion of the loss, determined under subparagraph e of the second paragraph of section 737.18.17 in respect of the partnership for the fiscal period, is deemed to be nil.

For the purposes of the first paragraph, a corporation’s share of an amount is equal to the proportion of that amount that the corporation’s share of the partnership’s income for the fiscal period is of the partnership’s income for that fiscal period.

In this section, “annual qualification certificate”, “major investment project” and “recognized business” have the meaning assigned by the first paragraph of section 737.18.14.

2002, c. 9, s. 12; 2004, c. 21, s. 131.