I-3 - Taxation Act

Section 733.0.5.1 Disposition versions

2024-05-07

733.0.5.1. 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 large investment project of the corporation or partnership, as the case may be, in respect of which a certificate was issued for the corporation’s taxation year or the partnership’s fiscal period, the following rules apply:

(a)  where, in respect of the corporation for the year, the amount determined under subparagraph a of the second paragraph of section 737.18.17.5 exceeds the amount determined under subparagraph b of that paragraph,

i.  the amount that is the income or portion of the income, as the case may be, of the corporation for the year, determined under that subparagraph a, is, in the proportion determined in the second paragraph, deemed to be nil, and

ii.  the amount that is the loss or portion of the loss, as the case may be, of the corporation for the year, determined under that subparagraph b, is, in the proportion determined in the second paragraph, deemed to be nil; and

(b)  where, in respect of the partnership for the fiscal period, the amount determined under subparagraph d of the second paragraph of section 737.18.17.5 exceeds the amount determined under subparagraph e of that paragraph,

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

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

The proportion to which the first paragraph refers is the proportion that the amount that would be determined in respect of the corporation for the year under section 737.18.17.5 if, for the purposes of section 737.18.17.6, its taxable income for the year otherwise determined were equal to the particular amount that is the total of the amounts determined in accordance with subparagraphs i and ii of subparagraph a of the first paragraph of section 737.18.17.5, is of that particular amount.

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

In this section, “certificate”, “large investment project” and “recognized business” have the meaning assigned by the first paragraph of section 737.18.17.1.

2015, c. 21, s. 258; 2024, c. 11, s. 60.

2015-10-21

733.0.5.1. 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 large investment project of the corporation or partnership, as the case may be, in respect of which a certificate was issued for the corporation’s taxation year or the partnership’s fiscal period, the following rules apply:

(a)  where, in respect of the corporation for the year, the amount determined under subparagraph a of the second paragraph of section 737.18.17.5 exceeds the amount determined under subparagraph b of that paragraph,

i.  the amount that is the income or portion of the income, as the case may be, of the corporation for the year, determined under that subparagraph a, is, in the proportion determined in the second paragraph, deemed to be nil, and

ii.  the amount that is the loss or portion of the loss, as the case may be, of the corporation for the year, determined under that subparagraph b, is, in the proportion determined in the second paragraph, deemed to be nil; and

(b)  where, in respect of the partnership for the fiscal period, the amount determined under subparagraph d of the second paragraph of section 737.18.17.5 exceeds the amount determined under subparagraph e of that paragraph,

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

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

The proportion to which the first paragraph refers is the proportion that the amount that would be determined in respect of the corporation for the year under section 737.18.17.5 if, for the purposes of section 737.18.17.6, its taxable income for the year otherwise determined were equal to the particular amount that is the total of the amounts determined in accordance with subparagraphs a and b of the first paragraph of section 737.18.17.5, is of that particular amount.

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

In this section, “certificate”, “large investment project” and “recognized business” have the meaning assigned by the first paragraph of section 737.18.17.1.

2015, c. 21, s. 258.