I-3 - Taxation Act

Section 1128 Disposition versions

2006-03-01

1128. A non-resident owned investment corporation which does not have, at any time in a taxation year, an establishment in Canada and which disposes of a taxable Québec property within the meaning of paragraphs a and b of section 1094 must pay tax for the year at the rate established in subsection 1 of section 771 on the amount by which its taxable capital gains for the year resulting from the disposition of such property exceed the aggregate of its allowable capital losses for the year resulting from the disposition of such property and the net capital losses incurred by it in respect of the disposition of such property during the preceding taxation years and the three taxation years following the taxation year.

However, such tax shall not exceed that which the corporation would have to pay for the year if the expression “taxable Québec property within the meaning of paragraphs a and b of section 1094” contained in the first paragraph were replaced by the expression “taxable Canadian property within the meaning of section 1095” to the extent that such section refers to paragraphs a and b of section 1094.

1976, c. 18, s. 25; 1987, c. 21, s. 86; 1991, c. 8, s. 94; 1992, c. 1, s. 203; 1997, c. 3, s. 71; 2004, c. 8, s. 204.