I-3 - Taxation Act

Section 792 Disposition versions

2006-03-01

792. (1)  Where a patronage dividend is computed at a different rate in the case of persons qualifying as members, the amount that may be deducted under section 786 is equal to the lesser of the aggregate of patronage dividends made by the taxpayer and mentioned in section 786 and the aggregate of the part of the income of the taxpayer for the year attributable to business done with members and such patronage dividends made to non-member customers of the year.

(2)  A person qualifies as a member, for the purposes of this Title, if, as a member or shareholder, he is entitled to full voting rights in the conduct of the affairs of a taxpayer, being a corporation, or of a corporation of which the taxpayer is a subsidiary wholly-owned corporation.

1972, c. 23, s. 600; 1989, c. 77, s. 88; 1997, c. 3, s. 71.