Income Tax Act — I-3.3 247
any, by which the adjusted cost base to the taxpayer of a capital property (other than a depreciable property) is reduced in the year because of an adjustment made under subsection (2.02), or (ii) [Repealed, 2016, c. 12, s. 62] (iii) the amount, if any, by which the capital cost to the taxpayer of a depreciable property is reduced in the year because of an adjustment made under subsection (2.02); and (b) all amounts each of which is that proportion of the total of (i) 1/2 of the amount, if any, by which the adjusted cost base to a partnership of a capital property (other than a depreciable property) is reduced in a fiscal period that ends in the year because of an adjustment made under subsection (2.02), and (ii) [Repealed, 2016, c. 12, s. 62] (iii) the amount, if any, by which the capital cost to a partnership of a depreciable property is reduced in the period because of an adjustment made under subsection (2.02), that (iv) the taxpayer’s share of the income or loss of the partnership for the period is of (v) the income or loss of the partnership for the period, and where the income and loss of the partnership are nil for the period, the income of the partnership for the period is deemed to be $1,000,000 for the purpose of determining a taxpayer’s share of the partnership’s income for the purpose of this definition. ( redressement de capital ) transfer pricing capital setoff adjustment of a taxpayer for a taxation year means the amount, if any, that would be the taxpayer’s transfer pricing capital adjustment for the year if the references, in the definition transfer pricing capital adjustment , to “reduced” were read as “increased”. ( redressement compensatoire de capital ) Transfer Pricing Guidelines means (a) if no text is prescribed under paragraph (b), the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations , as adopted by the Committee on Fiscal Affairs on January 7, 2022; or (b) any text prescribed by regulation. ( Principes applicables en matière de prix de transfert ) transfer pricing income adjustment of a taxpayer for a taxation year means the total of all amounts each of which is the amount, if any, by which an adjustment made under subsection (2.02) (other than an adjustment included in determining a transfer pricing capital adjustment of the taxpayer for a taxation year) would result in an increase in the taxpayer’s income for the year or a decrease in a loss of the taxpayer for the year from a source if that adjustment were the only adjustment made under subsection (2.02). ( redressement de revenu ) transfer pricing income setoff adjustment of a taxpayer for a taxation year means the total of all amounts each of which is the amount, if any, by which an adjustment made under subsection (2.02) (other than an adjustment included in determining a transfer pricing capital setoff adjustment of the taxpayer for a taxation year) would result in a decrease in the taxpayer’s income for the year or an increase in a loss of the taxpayer for the year from a source if that adjustment were the only adjustment made under subsection (2.02). ( redressement compensatoire de revenu ) Delineation of transaction or series (1.1) For the purposes of this section, a transaction or series of transactions is to be analyzed and determined with reference to the economically relevant characteristics of the transaction or series. Interpretation of conditions (1.2) For the purposes of the definitions actual conditions and arm’s length conditions in subsection (1), the word “conditions” is to be interpreted broadly, and includes, but is not limited to, price, rate, gross margin, net margin, the division of profit, contributions to costs and any commercial or financial information relevant to the determination of the quantum or nature of initial amounts or adjusted amounts, as the case may be. Transfer pricing adjustment — application (2) Subsection (2.02) applies to a taxpayer or a partnership in respect of a