Income Tax Act — I-3.3 111
r the taxation year of the corporation in which the former subsidiary corporation’s loss year ended shall be deemed to be a non-capital loss of the corporation from carrying on the former subsidiary corporation’s loss business. Loss restriction event — special rules (5.5) If at any time a taxpayer is subject to a loss restriction event, (a) paragraphs (4)(c) to (f) and subsections (5.1) to (5.3) do not apply to the taxpayer in respect of the loss restriction event if at that time the taxpayer becomes or ceases to be exempt from tax under this Part on its taxable income; and (b) if it can reasonably be considered that the main reason that the taxpayer is subject to the loss restriction event is to cause paragraph (4)(d) or any of subsections (5.1) to (5.3) to apply with respect to the loss restriction event, the following do not apply with respect to the loss restriction event: (i) that provision and paragraph (4)(e), and (ii) if that provision is paragraph (4)(d), paragraph (4)(c). Limitation (6) For the purposes of this section and paragraph 53(1)(i), any loss of a taxpayer for a taxation year from a farming business shall, after the taxpayer disposes of the land used in that farming business and to the extent that the amount of the loss is required by paragraph 53(1)(i) to be added in computing the adjusted cost base to the taxpayer of the land immediately before the disposition, be deemed not to be a loss. Idem (7) For the purposes of this section, any loss of a taxpayer for a taxation year from a farming business shall, to the extent that the loss is included in the amount of any deduction permitted by section 101 in computing the taxpayer’s income for any subsequent taxation year, be deemed not to be a loss of the taxpayer for the purpose of computing the taxpayer’s taxable income for that subsequent year or any taxation year subsequent thereto. (7.1) to (7.2) [Repealed, 2013, c. 34, s. 241] Non-capital losses of employee life and health trusts (7.3) Paragraph (1)(a) does not apply in computing the taxable income of a trust for a taxation year if the trust is, in the year, an employee life and health trust. Non-capital losses of employee life and health trusts (7.4) For the purposes of computing the taxable income of an employee life and health trust for a taxation year, there may be deducted such portion as the trust may claim of the trust’s non-capital losses for the seven taxation years immediately preceding and the three taxation years immediately following the year. Non-capital losses of employee life and health trusts (7.5) Notwithstanding paragraph (1)(a) and subsection (7.4), no amount in respect of the trust’s non-capital losses for a taxation year in which the trust was an employee life and health trust may be deducted in computing the trust’s taxable income for another taxation year (referred to in this subsection as the “specified year”) if (a) the trust was not an employee life and health trust for the specified year; or (b) the trust is an employee life and health trust that, because of the application of subsection 144.1(3), is not permitted to deduct any amount under subsection 104(6) for the specified year. Definitions (8) In this section, exchange rate , at any time in respect of a currency of a country other than Canada, means the rate of exchange between that currency and Canadian currency quoted by the Bank of Canada on the day that includes that time or, if that day is not a business day, on the day that immediately precedes that day, or a rate of exchange acceptable to the Minister; ( taux de change ) farm loss of a taxpayer for a taxation year means the amount determined by the formula A - C where A is the lesser of (a) the amount, if any, by which (i) the total of all amounts each of which is the taxpayer’s loss for the year from a farming or fishing business exceeds (ii) the total of all amounts each of which is the taxpayer’s income for the year from a farming or fishing business, and (b) the am