I-4 - Act respecting the application of the Taxation Act

Section 10 Disposition versions

1977-12-31

10. Where, following the amendment made under the former Corporation Tax Act in computing depreciation, a corporation has a difference deductible from its income for a taxation year beginning after 1961, such corporation, to the extent and on the prescribed conditions, may deduct, in each taxation year, in computing its taxable income, the aggregate or a part of such difference, to the extent that it has not yet been deductible from income for years following 1961, according to the rules hereinafter determined:

(a)  if the difference does not exceed $5,000, the aggregate of such difference;

(b)  if the difference exceeds $5,000 but does not exceed $10,000, one-half of such difference;

(c)  if the difference exceeds $10,000 but does not exceed $25,000, one-third of such difference;

(d)  if the difference exceeds $25,000 but does not exceed $100,000, one-fifth of such difference;

(e)  if the difference exceeds $100,000 but does not exceed $1,000,000, one-tenth of such difference; or

(f)  if the difference exceeds $1,000,000, one-twelfth of such difference.

However, the deduction allowed by any of paragraphs a to f of the first paragraph must not exceed one-half of the net income of the corporation before such deduction.

1972, c. 24, s. 24; 1972, c. 26, s. 90.