I-3 - Taxation Act

Section 736.0.1 Disposition versions

2017-02-08

736.0.1. Where, at any time, a taxpayer is subject to a loss restriction event, no amount in respect of a non-capital loss or farm loss for a taxation year ending before that time is deductible by the taxpayer for a taxation year ending after that time.

However, the taxpayer may deduct, for a particular taxation year ending after that time, such portion of a non-capital loss or farm loss, as the case may be, for a taxation year ending before that time as may reasonably be regarded as the taxpayer’s loss from carrying on a business and, where a business was carried on by the taxpayer in that taxation year, such portion of the non-capital loss as may reasonably be regarded as being attributable to an amount deductible under section 725.1.1 in computing the taxpayer’s taxable income for that taxation year, if the following conditions are met:

(a)  the business was carried on by the taxpayer for profit or with a reasonable expectation of profit throughout the particular year; and

(b)  the amount that the taxpayer may deduct must not exceed the aggregate of the taxpayer’s income for the particular year from the business and, where the taxpayer sold, leased, rented or developed properties or rendered services in the course of carrying on that business before that time, from any other business substantially all the income of which was derived from the sale, leasing, rental or development, as the case may be, of similar properties, or the rendering of similar services.

1984, c. 15, s. 167; 1985, c. 25, s. 120; 1986, c. 19, s. 153; 1989, c. 77, s. 80; 1990, c. 59, s. 278; 1997, c. 3, s. 71; 2017, c. 1, s. 178.

2006-03-01

736.0.1. Where, at any time, control of a corporation has been acquired by a person or group of persons, no amount in respect of a non-capital loss or farm loss for a taxation year ending before that time is deductible by the corporation for a taxation year ending after that time.

However, the corporation may deduct, for a particular taxation year ending after that time, such portion of a non-capital loss or farm loss, as the case may be, for a taxation year ending before that time as may reasonably be regarded as its loss from carrying on a business and, where a business was carried on by the corporation in that taxation year, such portion of the non-capital loss as may reasonably be regarded as being attributable to an amount deductible under section 725.1.1 in computing its taxable income for that taxation year, if the following conditions are met:

(a)  the business was carried on by the corporation for profit or with a reasonable expectation of profit throughout the particular year;

(b)  the amount that the corporation may deduct shall not exceed the aggregate of its income for the particular year from the business and, where the corporation sold, leased, rented or developed properties or rendered services in the course of carrying on that business before that time, from any other business substantially all the income of which was derived from the sale, leasing, rental or development, as the case may be, of similar properties, or the rendering of similar services.

1984, c. 15, s. 167; 1985, c. 25, s. 120; 1986, c. 19, s. 153; 1989, c. 77, s. 80; 1990, c. 59, s. 278; 1997, c. 3, s. 71.