Income Tax Regulations — 1104
xceed 100%, $1,500,000 multiplied by the percentage assigned to that eligible person or partnership in the agreement; and (b) in any other case, nil. Failure to file agreement (3.4) If any of the eligible persons or partnerships that are associated with each other (within the meaning of section 256 of the Act, as modified by subsection (3.6)) in a taxation year has failed to file with the Minister an agreement described in subsection (3.3) within 30 days after notice in writing by the Minister has been forwarded to any of them that such an agreement is required for the purpose of any assessment of tax under Part I of the Act, the Minister shall, for the purpose of this Part and Schedules II to VI, allocate an amount to one or more of them for the taxation year. Special rules for immediate expensing limit (3.5) Despite subsections (3.2) to (3.4), (a) where an eligible person or partnership (in this paragraph referred to as the “first person”) has more than one taxation year ending in the same calendar year and it is associated (within the meaning of section 256 of the Act, as modified by subsection (3.6)) in two or more of those taxation years with another eligible person or partnership (in this paragraph referred to as the “other person”) that has a taxation year ending in that calendar year, the immediate expensing limit of the first person for each taxation year ending in the calendar year in which it is associated (within the meaning of section 256 of the Act, as modified by subsection (3.6)) with the other person that ends after the first such taxation year ending in that calendar year is, subject to the application of paragraph (b), an amount equal to the lesser of (i) its immediate expensing limit determined under subsection (3.3) or (3.4) for the first such taxation year ending in the calendar year, and (ii) its immediate expensing limit determined under subsection (3.3) or (3.4) for the particular taxation year ending in the calendar year; and (b) where an eligible person or partnership has a taxation year that is less than 51 weeks, its immediate expensing limit for the year is that proportion of its immediate expensing limit for the year determined without reference to this paragraph that the number of days in the year is of 365. Associated - interpretation (3.6) For the purposes of this Part and Schedules II to VI, in determining whether an eligible person or partnership is associated (within the meaning of section 256 of the Act, as modified by this subsection) with another eligible person or partnership in a taxation year (a) if the eligible person or partnership is a partnership, (i) the partnership is deemed to be a corporation (in this subsection referred to as a “deemed corporation”) for the year, (ii) the deemed corporation is deemed to have a capital stock of a single class of shares, with a total of 100 issued and outstanding shares, (iii) each member (in this subsection referred to as a “deemed shareholder”) of the deemed corporation is deemed to be a shareholder of the deemed corporation, (iv) each deemed shareholder of the deemed corporation is deemed to hold a number of shares in the capital stock of the deemed corporation determined by the formula A × 100 where A is equal to (A) the deemed shareholder’s specified proportion for the last fiscal period of the deemed corporation, or (B) if the deemed shareholder does not have a specified proportion described in clause (A), the proportion that the fair market value of the deemed shareholder’s interest in the deemed corporation at that time is of the fair market value of all interests in the deemed corporation at that time, and (v) the deemed corporation’s fiscal period is deemed to be its taxation year; and (b) if the eligible person or partnership is an individual (other than a trust) who carries on a business or has acquired immediate expensing property (i) the individual, in respect of that business or property, is deemed to be a corporation that is con