Income Tax Regulations — 1100
ncluded in computing the taxpayer’s income for the year, exceeds (b) the total of all amounts each of which is (i) a loss of the taxpayer from a business in which computer tax shelter property owned by the taxpayer is used, computed without reference to any deduction under subsection (1) in respect of such property, or (ii) a loss of a partnership from a business in which computer tax shelter property of the partnership is used, to the extent of the share of such loss that is included in computing the taxpayer’s income for the year. (20.2) For the purpose of this Part, computer tax shelter property of a person or partnership is depreciable property of a prescribed class in Schedule II that is computer software or property described in Class 50 or 52 where (a) the person’s or partnership’s interest in the property is a tax shelter investment (as defined by subsection 143.2(1) of the Act) determined without reference to subsection (20.1); or (b) an interest in the person or partnership is a tax shelter investment (as defined by subsection 143.2(1) of the Act) determined without reference to subsection (20.1). Certified Films and Video Tapes (21) Notwithstanding subsection (1), where a taxpayer (in this subsection and subsection (22) referred to as the “investor”) has acquired property of Class 10 or 12 in Schedule II that is a certified feature film or certified production (in this subsection and subsection (22) referred to as the “film or tape”), in no case shall the deduction in respect of property of that class otherwise allowed to the investor by virtue of subsection (1) in computing the investor’s income for a particular taxation year exceed the amount that it would be if the capital cost to the investor of the film or tape were reduced by the aggregate of amounts, each of which is (a) where the principal photography or taping of the film or tape is not completed before the end of the particular taxation year, the amount, if any, by which (i) the capital cost to the investor of the film or tape as of the end of the year exceeds the aggregate of (ii) where the principal photography or taping of the film or tape is completed within 60 days after the end of the year, the amount that may reasonably be considered to be the investor’s proportionate share of the production costs incurred in respect of the film or tape before the end of the year, (iii) where the principal photography or taping of the film or tape is not completed within 60 days after the end of the year, the amount that may reasonably be considered to be the investor’s proportionate share of the lesser of (A) the production costs incurred in respect of the film or tape before the end of the year, and (B) the proportion of the production costs incurred to the date the principal photography or taping is completed that the percentage of the principal photography or taping completed as of the end of the year, as certified by the Minister of Communications, is of 100 per cent, and (iv) the total of amounts determined under paragraphs (b) to (e) in respect of the film or tape as of the end of the year; (b) where, at any time before the later of (i) the date the principal photography or taping of the film or tape is completed, and (ii) the date the investor acquired the film or tape, a revenue guarantee (other than a revenue guarantee that is certified by the Minister of Communications to be a guarantee under which the person who agrees to provide the revenue is a licensed broadcaster or bona fide film or tape distributor) is entered into in respect of the film or tape whereby it may reasonably be considered certain, having regard to all the circumstances, that the investor will receive revenue under the terms of the revenue guarantee, the amount, if any, that may reasonably be considered to be the portion of the revenue that has not been included in the investor’s income in the particular taxation year or a previous taxation year; (c) where, at any time, a revenue guaran