GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Income Tax Application Rules — I-3.31 20
rence to the words “the later of June 18, 1971 and the day the partnership was created, and thereafter without interruption until”, (B) the amount determined under subparagraph 3(c)(i) for any person in respect of that class were nil, and (C) the undepreciated capital cost to each person described in the definition acquisition cost in subsection (4) of the particular property as of December 31, 1971 were the amount, if any, by which the amount assumed by subparagraph (a)(ii) to have been the acquisition cost of the person in respect of the property exceeds the total of all allowed to the person in respect of the property under regulations made under paragraph 11(1)(a) of the former Act in computing income for taxation years ending before 1972, had been allowed to the partnership in respect of the particular property under regulations made under paragraph 20(1)(a) of the amended Act in computing income for taxation years ending before the particular time; and (c) in computing the income for the 1972 and subsequent taxation years of each person who was, on December 31, 1971, a member of the partnership, there may be deducted such amount as the person claims for the year, not exceeding the amount, if any, by which (i) the amount by which (A) the amount assumed by clause (b)(ii)(C) to have been the undepreciated capital cost to the person of the particular property as of December 31, 1971 exceeds (B) a percentage of the amount determined under subparagraph (b)(ii) in respect of the particular property, equal to the percentage that would be the person’s percentage (within the meaning assigned by subsection (4)) in respect of the particular property if that property constituted a prescribed class, exceeds (ii) the total of all amounts deducted under this paragraph in computing the person’s income for preceding taxation years, and for the purposes of section 3 of the amended Act the amount so claimed shall be deemed to be a deduction permitted by subdivision e of Division B of Part I of that Act. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 2 (5th Supp.), s. 20; 1995, c. 3, s. 56; 1998, c. 19, s. 248; 2000, c. 12, s. 147; 2016, c. 12, s. 72
Income Tax Application Rules — I-3.31
acquisition cost of a person who was a member of a partnership on December 31, 1971 in respect of depreciable property of a prescribed class that was partnership property of the partnership on December 31, 1971 means the total of the undepreciated capital cost to the person of property of that class as of December 31, 1971 and the total depreciation allowed to the person before 1972 in respect of property of that class; ( coût d’acquisition )
Income Tax Application Rules — I-3.31
percentage of a member of a partnership in respect of any depreciable property of a prescribed class that was partnership property of the partnership on December 31, 1971 means the interest of the member of the partnership in property of that class, expressed as a percentage of the total of the interests of all members of the partnership in property of that class on that day; ( pourcentage )
Income Tax Application Rules — I-3.31 (a)
undepreciated cost to the partnership of any class of depreciable property means an amount determined as follows: (a) determine, for each person who, because of having been a member of the partnership on the later of June 18, 1971 and the day the partnership was created, and thereafter without interruption until December 31, 1971, can reasonably be regarded as having had an interest in property of that class on December 31, 1971, the amount, if any, by which the undepreciated capital cost to the person of property of that class as of December 31, 1971 exceeds the amount, if any, determined under subparagraph (3)(c)(i) for the person in respect of property of that class, (b) determine, for each such person, the amount that is that proportion of the amount determined under paragraph (a) that 100% is of the person’s percentage in respect of property of that class, and (c) select the amount determined under paragraph (b) for a person described therein that is not greater than any amount so determined for any other such person, and the amount selected under paragraph (c) is the undepreciated cost to the partnership of that class. ( fraction non amortie du coût, pour la société de personnes )
Income Tax Application Rules — I-3.31 21
ctivity in accordance with a law of Canada or of a province or Canadian municipality, to an extent to which the taxpayer would otherwise be unable to carry it on in accordance therewith, (b) that was granted or issued by Her Majesty in right of Canada or a province or a Canadian municipality, or by a department, board, agency or any other body authorized by or under a law of Canada, a province or a Canadian municipality to grant or issue such a right or licence, and (c) that was acquired by the taxpayer (i) as a result of a transaction that occurred before 1972, or (ii) at a particular time for the purpose of affecting the continuation, without interruption, of rights that are substantially similar to the rights that the taxpayer had under a government right held by the taxpayer before the particular time; ( droit gouvernemental ) original right of a taxpayer in respect of a government right means a right or licence (a) described in the definition government right in this subsection, and (b) acquired by the taxpayer as a result of a transaction that occurred before 1972 for a purpose other than the purpose described in subparagraph (c)(ii) of that definition, if the government right was acquired by the taxpayer for the purpose of effecting the continuation, without interruption, of rights that are substantially similar to the rights that the taxpayer had under the right or licence; ( droit initial ) specified right of a taxpayer in respect of a government right means a right owned by a taxpayer on December 31, 1971 that was (a) an original right, or (b) a government right that was acquired by the taxpayer in substitution for the original right or that was one of a series of government rights acquired by the taxpayer for the purpose of effecting the continuation, without interruption, of rights that are substantially similar to the rights that the taxpayer had under the original right. ( droit particulier ) [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 2 (5th Supp.), s. 21; 2016, c. 12, s. 73
Income Tax Application Rules — I-3.31 (a)
government right of a taxpayer means a right or licence (a) that enables the taxpayer to carry on a business activity in accordance with a law of Canada or of a province or Canadian municipality, to an extent to which the taxpayer would otherwise be unable to carry it on in accordance therewith, (b) that was granted or issued by Her Majesty in right of Canada or a province or a Canadian municipality, or by a department, board, agency or any other body authorized by or under a law of Canada, a province or a Canadian municipality to grant or issue such a right or licence, and (c) that was acquired by the taxpayer (i) as a result of a transaction that occurred before 1972, or (ii) at a particular time for the purpose of affecting the continuation, without interruption, of rights that are substantially similar to the rights that the taxpayer had under a government right held by the taxpayer before the particular time; ( droit gouvernemental )
Income Tax Application Rules — I-3.31 (a)
original right of a taxpayer in respect of a government right means a right or licence (a) described in the definition government right in this subsection, and (b) acquired by the taxpayer as a result of a transaction that occurred before 1972 for a purpose other than the purpose described in subparagraph (c)(ii) of that definition, if the government right was acquired by the taxpayer for the purpose of effecting the continuation, without interruption, of rights that are substantially similar to the rights that the taxpayer had under the right or licence; ( droit initial )
Income Tax Application Rules — I-3.31 (a)
specified right of a taxpayer in respect of a government right means a right owned by a taxpayer on December 31, 1971 that was (a) an original right, or (b) a government right that was acquired by the taxpayer in substitution for the original right or that was one of a series of government rights acquired by the taxpayer for the purpose of effecting the continuation, without interruption, of rights that are substantially similar to the rights that the taxpayer had under the original right. ( droit particulier )
Income Tax Application Rules — I-3.31 23
number of its taxation years ending after 1971 and either before or coincidentally with the taxation year, is of (B) 10; ( participation aux investissements ) 1971 receivables in respect of a business of a taxpayer means the total of (a) all amounts that became receivable by the taxpayer in respect of property sold or services rendered in the course of the business (within the meaning given that expression in section 34 of the amended Act) in taxation years ending before 1972 and that were not included in computing the taxpayer’s income for any such taxation year, other than debts that were established by the taxpayer to have become bad debts before the end of the 1971 fiscal period of the business, and (b) the total of all amounts each of which is an amount, in respect of each partnership by means of which the taxpayer carried on that business before 1972, equal to such portion of the total that would be determined under paragraph (a) in respect of the partnership, if the references in that paragraph to “the taxpayer” were read as references to “the partnership”, as is designated by the taxpayer in the taxpayer’s return of income under Part I of the amended Act for the year to be attributable to the taxpayer, except that where the total of the portions so designated by all members of the partnership is less than the total that would be so determined under paragraph (a) in respect of the partnership, the Minister may designate the portion of that total that is attributable to the taxpayer, in which case the portion so designated by the Minister in respect of the taxpayer shall be deemed to be the portion so designated by the taxpayer. ( sommes à recevoir pour 1971 )
Income Tax Application Rules — I-3.31 (a)
investment interest in a business at the end of a taxation year of a taxpayer means (a) in the case of a taxpayer other than a corporation, the total of all amounts each of which is an amount in respect of a proprietorship or partnership by means of which the taxpayer carried on that business in Canada in the year, equal to, (i) in respect of each such proprietorship, the amount, if any, by which (A) the total of such of the amounts that were included in computing the taxpayer’s income for that or a preceding taxation year as were receivable by the taxpayer at the end of the fiscal period of the proprietorship ending in the taxation year, exceeds (B) the amount claimed under paragraph 20(1)(l) of the amended Act as a reserve for doubtful debts in computing the taxpayer’s income from the business for the fiscal period of the proprietorship ending in the year, and (ii) in respect of each such partnership, the adjusted cost base to the taxpayer of the taxpayer’s interest in the partnership immediately after the end of the fiscal period of the partnership ending in the year, (b) in the case of a taxpayer that is a corporation, the lesser of (i) the amount thereof that would be determined under paragraph (a) in respect of the corporation if that paragraph applied to a taxpayer that is a corporation, and (ii) that proportion of its 1971 receivables in respect of the business that (A) the amount, if any, by which 10 exceeds the number of its taxation years ending after 1971 and either before or coincidentally with the taxation year, is of (B) 10; ( participation aux investissements )
Income Tax Application Rules — I-3.31 (a)
1971 receivables in respect of a business of a taxpayer means the total of (a) all amounts that became receivable by the taxpayer in respect of property sold or services rendered in the course of the business (within the meaning given that expression in section 34 of the amended Act) in taxation years ending before 1972 and that were not included in computing the taxpayer’s income for any such taxation year, other than debts that were established by the taxpayer to have become bad debts before the end of the 1971 fiscal period of the business, and (b) the total of all amounts each of which is an amount, in respect of each partnership by means of which the taxpayer carried on that business before 1972, equal to such portion of the total that would be determined under paragraph (a) in respect of the partnership, if the references in that paragraph to “the taxpayer” were read as references to “the partnership”, as is designated by the taxpayer in the taxpayer’s return of income under Part I of the amended Act for the year to be attributable to the taxpayer, except that where the total of the portions so designated by all members of the partnership is less than the total that would be so determined under paragraph (a) in respect of the partnership, the Minister may designate the portion of that total that is attributable to the taxpayer, in which case the portion so designated by the Minister in respect of the taxpayer shall be deemed to be the portion so designated by the taxpayer. ( sommes à recevoir pour 1971 )
Income Tax Application Rules — I-3.31 24
Definition of valuation day for capital gains and losses 24 In this Act, valuation day means (a) December 22, 1971, in relation to any property prescribed to be a publicly-traded share or security; and (b) December 31, 1971, in relation to any other property.
Income Tax Application Rules — I-3.31 (a)
amortized cost to a taxpayer of any obligation on January 1, 1972 means (a) the principal amount of the obligation, if its actual cost to the taxpayer was less than 100% but not less than 95% of that principal amount and the obligation was issued before November 8, 1969, (b) the actual cost to the taxpayer of the obligation, if the actual cost to the taxpayer thereof was less than 105% but not less than 100% of the principal amount thereof, and (c) in any other case, the actual cost to the taxpayer of the obligation, plus that proportion of the discount or minus that proportion of the premium, as the case may be, in respect thereof that (i) the number of full months in the period commencing with the day the taxpayer last acquired the obligation and ending with valuation day, is of (ii) the number of full months in the period commencing with the day the taxpayer last acquired the obligation and ending with the date of its maturity; ( coût amorti )
Income Tax Application Rules — I-3.31
capital property of a taxpayer means any depreciable property of the taxpayer, and any property (other than depreciable property) any gain or loss from the disposition of which would, if the property were disposed of after 1971, be a capital gain or a capital loss, as the case may be, of the taxpayer; ( immobilisation )
Income Tax Application Rules — I-3.31
discount in respect of any obligation owned by a taxpayer means the amount, if any, by which the principal amount thereof exceeds its actual cost to the taxpayer, determined without reference to subsection (3); ( escompte )
Income Tax Application Rules — I-3.31
eligible capital property of a taxpayer means any property, ½ of any amount payable to the taxpayer as consideration for the disposition of which would, if the property were disposed of after 1971, be eligible capital amount in respect of business within the meaning assigned by subsection 14(1) of the amended Act; ( immobilisation admissible )
Income Tax Application Rules — I-3.31
obligation means a bond, debenture, bill, note, mortgage, hypothecary claim or agreement of sale; ( obligation )
Income Tax Application Rules — I-3.31
premium in respect of any obligation owned by a taxpayer means the amount, if any, by which its actual cost to the taxpayer determined without reference to subsection (3) exceeds the principal amount thereof; ( primes )
Income Tax Application Rules — I-3.31 (a)
spect of the business (computed without reference to section 21 of this Act) that would have become payable to the partnership would exceed (ii) the amount that would be deemed by subsection 21(1) to be the amount that had become payable to the partnership if the partnership had disposed of the business at the particular time for an amount equal to its fair market value at that time, exceeds the total of all amounts each of which is the amount of any debt owing by the partnership, or of any other obligation of the partnership to pay an amount, that was outstanding at the beginning of the partnership’s first fiscal period ending after 1971, minus such part, if any, thereof as would, if the amount had been paid by the partnership in that fiscal period, have been deductible in computing its income for that fiscal period. ( masse fiscale )
Income Tax Application Rules — I-3.31 26.1
Change of use of property before 1972 26.1 (1) For the purposes of paragraph 40(2)(b) and the definition principal residence in section 54 of the amended Act, where a taxpayer owned, on December 31, 1971, a property that is a housing unit, a leasehold interest in a housing unit or a share of the capital stock of a cooperative housing corporation, if the housing unit was, or if the share was acquired for the sole purpose of acquiring the right to inhabit, a housing unit owned by the corporation that was ordinarily inhabited by the taxpayer, the taxpayer began at any time thereafter but before 1972 to use the property for the purpose of gaining or producing income therefrom, or for the purpose of gaining or producing income from a business, and the taxpayer elected in the taxpayer’s return of income for the 1974 or 1975 taxation year as if the taxpayer had begun to use the property for the purpose of gaining or producing income therefrom of for the purpose of gaining or producing income from a business on January 1, 1972, the taxpayer shall be deemed to have made an election under subsection 45(2) of the amended Act in the taxpayer’s return of income for the 1972 taxation year and to have so begun to use the property. No capital cost allowance while election in force (2) Where the taxpayer has made the election described in subsection (1), no amount may be deducted under paragraph 20(1)(a) of the amended Act for the 1974 and subsequent taxation years in respect of property referred to in that subsection while the election remains in force.
Income Tax Application Rules — I-3.31 29
A of the former Act, deductible from or in computing a taxpayer’s income, or where any amount is or has been deductible in respect of expenses under any of those provisions from taxes otherwise payable, it is declared that no amount in respect of the same expenses is or has been deductible under any other authority in computing the income or from the income of that taxpayer or any other taxpayer for any taxation year. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 2 (5th Supp.), s. 29; 1994, c. 7, Sch. II, s. 201; 1997, c. 25, s. 73
Income Tax Application Rules — I-3.31 30
Reference to this Act in amended Act 30 (3) In subsection 66(14) of the amended Act, any amount deductible under the Income Tax Application Rules in respect of that subsection means any amount deductible under section 29 of this Act.
Income Tax Application Rules — I-3.31 31
Application of s. 67 of amended Act 31 In respect of any outlay or expense made or incurred by a taxpayer before 1972, section 67 of the amended Act shall be read without reference to the words “in respect of which any amount is”.
Income Tax Application Rules — I-3.31 32
Application of para. 69(1)(a) of amended Act 32 (1) Paragraph 69(1)(a) of the amended Act does not apply to deem a taxpayer by whom anything was acquired at any time before 1972 to have acquired it at its fair market value at that time, unless, if subsection 17(1) of the former Act had continued to apply, that fair market value would have been deemed to have been paid or to be payable therefor for the purpose of computing the taxpayer’s income from a business. Application of para. 69(1)(b) of amended Act (2) Paragraph 69(1)(b) of the amended Act does not apply to deem a taxpayer by whom anything was disposed of at any time before the 1972 taxation year to have received proceeds of disposition therefor equal to its fair market value at that time. Application of para. 69(1)(c) of amended Act (3) For greater certainty, paragraph 69(1)(c) of the amended Act applies to property acquired by a taxpayer before, at or after the end of 1971.
Income Tax Application Rules — I-3.31 32.1
Capital dividend account 32.1 (4) Where a dividend became payable, or was paid if that time was earlier, by a corporation in a taxation year at a particular time that was before May 7, 1974, for the purpose of computing the corporation’s capital dividend account immediately before the particular time, all amounts each of which is an amount in respect of a capital loss from the disposition of property in the taxation year and before the particular time shall be deemed to be nil.
Income Tax Application Rules — I-3.31 34
Amalgamations 34 (1) Notwithstanding section 9, subsections 85I(1) and (2) of the former Act continue to apply with such modifications as, in the circumstances, are necessary because of this Act, in respect of any amalgamation of two or more corporations before 1972. Idem (4) In applying the provisions of subsection 29(25) to determine the amount that may be deducted by the successor or second successor corporation, as the case may be, in computing its income under Part I of the amended Act for a taxation year, where a predecessor corporation has paid an amount (other than a rental or royalty) to the government of Canada or a province for (a) the right to explore for petroleum or natural gas on a specified parcel of land in Canada (which right is, for greater certainty, declared to include a right of the type commonly referred to as a “licence”, “permit” or “reservation”), or (b) a legal lease of the right to take or remove petroleum or natural gas from a specified parcel of land in Canada, and before April 11, 1962 acquired the rights in respect of which the amount was so paid, if, before the predecessor corporation was entitled because of subsection 29(21) to any deduction in computing its income for a taxation year in respect of the amount so paid, the property of the predecessor corporation was acquired by the successor or second successor corporation, as the case may be, and at any time, before any well came into production in reasonable commercial quantities on the land referred to in paragraph (a) or (b), the successor or second successor corporation, as the case may be, surrendered all rights so acquired by the predecessor corporation (including, in respect of a right of the kind described in paragraph (a), all rights thereunder to any lease and all rights under any lease made thereunder) without receiving any consideration therefor or payment of any part of the amount so paid by the predecessor corporation, the amount so paid by the predecessor corporation shall be added at that time to the amount determined under subparagraph 29(25)(c)(i). Definition of amalgamation (7) In this section, amalgamation has the meaning assigned by section 85 i of the former Act.