Income Tax Act — I-3.3 37
and for that purpose the property is deemed to be of a separate prescribed class. Loss restriction event (6.1) If a taxpayer was, at any time (in this subsection referred to as “that time”) before the end of a taxation year of the taxpayer, last subject to a loss restriction event, the amount determined for the purposes of paragraph (1)(h) for the year with respect to the taxpayer in respect of a business is the amount, if any, by which (a) the amount, if any, by which (i) the total of all amounts each of which is (A) an expenditure described in paragraph (1)(a) or (c) that was made by the taxpayer before that time, (B) the amount determined immediately before that time in respect of the taxpayer under paragraph (1)(b), or (C) an amount determined in respect of the taxpayer under paragraph (1)(c.1) for its taxation year that ended immediately before that time exceeds the total of all amounts each of which is (ii) the total of all amounts determined in respect of the taxpayer under paragraphs (1)(d) to (g) for its taxation year that ended immediately before that time, or (iii) the amount deducted under subsection (1) in computing the taxpayer’s income for its taxation year that ended immediately before that time exceeds (b) the total of (i) if the business to which the amounts described in any of clauses (a)(i)(A) to (C) can reasonably be considered to have been related was carried on by the taxpayer for profit or with a reasonable expectation of profit throughout the year, the total of (A) the taxpayer’s income for the year from the business before making any deduction under subsection (1), and (B) if properties were sold, leased, rented or developed, or services were rendered, in the course of carrying on the business before that time, the taxpayer’s income for the year, before making any deduction under subsection (1), from any other business substantially all the income of which was derived from the sale, leasing, rental or development, as the case may be, of similar properties or the rendering of similar services, and (ii) the total of all amounts each of which is an amount determined in respect of a preceding taxation year of the taxpayer that ended after that time equal to the lesser of (A) the amount determined under subparagraph (i) with respect to the taxpayer in respect of the business for that preceding year, and (B) the amount in respect of the business deducted under subsection (1) in computing the taxpayer’s income for that preceding year. Definitions (7) In this section, approved means approved by the Minister after the Minister has, if the Minister considers it necessary, obtained the advice of the Department of Industry or the National Research Council of Canada. ( agréé ) scientific research and experimental development [Repealed, 1996, c. 21, s. 9(8)] Interpretation (8) In this section, (a) references to expenditures on or in respect of scientific research and experimental development (i) where the references occur in subsection 37(2), include only (A) expenditures each of which was an expenditure incurred for and all or substantially all of which was attributable to the prosecution of scientific research and experimental development, and (B) expenditures of a current nature that were directly attributable, as determined by regulation, to the prosecution of scientific research and experimental development, and (ii) where the references occur other than in subsection 37(2), include only (A) expenditures incurred by a taxpayer in a taxation year (other than a taxation year for which the taxpayer has elected under clause (B)), each of which is (I) an expenditure of a current nature all or substantially all of which was attributable to the prosecution, or to the provision of premises, facilities or equipment for the prosecution, of scientific research and experimental development in Canada, (II) an expenditure of a current nature directly attributable, as determined by regulation, to the prosecution, or to the p