I-3 - Taxation Act

Section 776.1.5.6 Disposition versions

2021-06-02

776.1.5.6. (Repealed).

1993, c. 19, s. 65; 1997, c. 3, s. 71; 2021, c. 14, s. 99.

2006-03-01

776.1.5.6. For the purposes of section 776.1.5.5, the following rules apply:

(a)  no amount may be deducted by a corporation under the said section 776.1.5.5 in computing its tax payable for a particular taxation year under this Part in respect of the unused portion of a deduction under section 776.1.5.4 in respect of the corporation for a taxation year, before the unused portions of deductions under the said section 776.1.5.4 in respect of the corporation for the taxation years preceding the year that the corporation may deduct for the particular year are deducted;

(b)  the unused portion of a deduction under section 776.1.5.4 in respect of a corporation for a taxation year may be deducted under the said section 776.1.5.5 in computing the tax payable under this Part by the corporation for a particular taxation year only to the extent that such unused portion exceeds the aggregate of all amounts deducted, in respect of the unused portion of the deduction, in computing the tax payable under this Part by the corporation for the taxation years preceding the particular year;

(c)  an amount may be deducted under the said section 776.1.5.5 by a corporation in computing its tax payable under this Part for a particular taxation year ending after the time that a person acquires control of the corporation, in respect of the unused portion of a deduction under section 776.1.5.4 in respect of the corporation for a taxation year ending before that time, only to the extent that the unused portion of the deduction may reasonably be considered to relate to a business of the corporation that was carried on by the corporation throughout the particular year for profit or with a reasonable expectation of profit.

1993, c. 19, s. 65; 1997, c. 3, s. 71.