737.18.17.7. Where the corporation described in section 737.18.17.5 for a taxation year is a manufacturing corporation, within the meaning assigned by the first paragraph of section 771.1, to which paragraph d.3 of subsection 1 of section 771 applies for the year, section 737.18.17.6 is to be read(a) as if “100/8” in subparagraph b of the first paragraph were replaced by,i. if subparagraph ii of subparagraph a of the first paragraph of section 771.0.2.5 applies to the corporation, “100/4”,
ii. if subparagraph i of subparagraph a of the first paragraph of section 771.0.2.5 applies to the corporation, the ratio determined by the formula
100/{8 – [(A × 100) + (B × 100)]}, or
iii. if subparagraph b of the first paragraph of section 771.0.2.5 applies to the corporation, the ratio obtained by dividing 100 by the amount by which 8 exceeds the aggregate of(1) the number determined by the formula
[A × (C – 25%)/25%] × 100, and
(2) the number determined by the formula
[B × (C – 25%)/25%] × 100; and
(b) as if “8%” in subparagraph i of subparagraphs b and d of the fifth paragraph were replaced by,i. if subparagraph ii of subparagraph a of the first paragraph of section 771.0.2.5 applies to the corporation, “4%”,
ii. if subparagraph i of subparagraph a of the first paragraph of section 771.0.2.5 applies to the corporation, the percentage determined by the formula
8% – (A + B), or
iii. if subparagraph b of the first paragraph of section 771.0.2.5 applies to the corporation, the amount by which 8% exceeds the aggregate of(1) the percentage determined by the formula
A × (C – 25%)/25%, and
(2) the percentage determined by the formula
B × (C – 25%)/25%.
In the formulas in the first paragraph,(a) A is the proportion of 2% that the number of days in the taxation year that follow 4 June 2014 but precede 1 April 2015 is of the number of days in the taxation year;
(b) B is the proportion of 4% that the number of days in the taxation year that follow 31 March 2015 is of the number of days in the taxation year; and
(c) C is the proportion of the manufacturing or processing activities, within the meaning assigned by the first paragraph of section 771.1, of the corporation for the taxation year.