I-3 - Taxation Act

Section 771.8.3 Disposition versions

2006-03-01

771.8.3. The amount which, for the purposes of paragraph h of subsection 1 of section 771, is to be determined under this section in respect of a corporation for a taxation year is equal to 75% of the least of

(a)  $200,000;

(b)  the amount by which the taxable income of the corporation for the year exceeds the aggregate of the amount determined in respect of the corporation for the year under section 771.0.2.2 and the amount, if any, of the corporation’s taxable income for the year that is not, because of an Act of the Legislature of Québec, subject to tax under this Part; and

(c)  (subparagraph repealed);

(d)  the amount by which its income for the year from an eligible business carried on by it in Canada exceeds its loss for the year from such a business.

However, the first paragraph shall be read,

(a)  where the corporation’s taxation year includes the last day of its exemption period, with “is equal to 75% of the least of”, in the portion before subparagraph a thereof, replaced by “is equal to such proportion of 75% of the least of the following amounts as the number of days in the year that are included in the corporation’s exemption period is of the number of days in the year:”;

(b)  where the corporation’s taxation year has less than 51 weeks, with the amount of $200,000, in subparagraph a thereof, replaced by such proportion of that amount as the number of days in the year is of 365.

1997, c. 85, s. 162; 2000, c. 39, s. 86; 2004, c. 21, s. 205.