I-3 - Taxation Act

Section 87.0.1 Disposition versions

2015-10-21

87.0.1. The amount that a taxpayer is required to include under paragraph m.1 of section 87 in computing the taxpayer’s income for a taxation year in respect of a partnership is determined by the formula

A × B - C.

In the formula in the first paragraph,

(a)  A is the aggregate of all amounts each of which is an amount of interest that is

i.  deductible by the partnership, and

ii.  paid by the partnership in, or payable by the partnership in respect of, the taxation year of the taxpayer (depending on the method regularly followed by the taxpayer in computing the taxpayer’s income) on a debt amount included, in accordance with section 171, in the taxpayer’s outstanding debts to specified persons not resident in Canada;

(b)  B is the proportion determined under section 170 in respect of the taxpayer for the taxation year; and

(c)  C is the aggregate of all amounts each of which is an amount included under section 580 in computing the income of the taxpayer for the taxation year or a subsequent taxation year, or of the partnership for a fiscal period, that may reasonably be considered to be in respect of an amount of interest described in subparagraph a.

For the purposes of subparagraph ii of subparagraph a of the second paragraph,

“debt amount” has the meaning assigned by paragraph a of section 174.1;

“specified person not resident in Canada” has the meaning assigned by subparagraph c of the first paragraph of section 172.

2015, c. 21, s. 112.