Income Tax Act — I-3.3 126
oportion of 26.5% that the number of days in the taxation year that are in 2011 is of the number of days in the taxation year, and (B) that proportion of 25% that the number of days in the taxation year that are after 2011 is of the number of days in the taxation year exceeds (ii) the total of all amounts that would, but for this subsection, be income or profits taxes paid in the year in respect of the business to the government of the taxing country, and (b) the taxpayer’s production tax amount for the business in the taxing country for the year. Deductions for specified capital gains (5.1) If in a taxation year an individual has claimed a deduction under section 110.6, 110.61 or 110.62 in computing the individual’s taxable income for the year, for the purposes of this section the individual shall be deemed to have claimed the deduction under section 110.6, 110.61 or 110.62 in respect of such taxable capital gains or portion thereof as the individual may specify in the individual’s return of income required to be filed pursuant to section 150 for the year or, where the individual has failed to so specify, in respect of such taxable capital gains as the Minister may specify in respect of the taxpayer for the year. Rules of construction (6) For the purposes of this section, (a) the government of a country other than Canada includes the government of a state, province or other political subdivision of that country; (b) where a taxpayer’s income for a taxation year is in whole or in part from sources in more than one country other than Canada, subsections (1) and (2) shall be read as providing for separate deductions in respect of each of the countries other than Canada; (c) if any income from a source in a particular country would be tax-exempt income but for the fact that a portion of the income is subject to an income or profits tax imposed by the government of a country other than Canada, the portion is deemed to be income from a separate source in the particular country; and (d) if, in computing a taxpayer’s income for a taxation year from a business carried on by the taxpayer in Canada, an amount is included in respect of interest paid or payable to the taxpayer by a person resident in a country other than Canada, and the taxpayer has paid to the government of that other country a non-business-income tax for the year with respect to the amount, the amount is, in applying the definition qualifying incomes in subsection (7) for the purpose of subsection (1), deemed to be income from a source in that other country. Definitions (7) In this section, business-income tax paid by a taxpayer for a taxation year in respect of businesses carried on by the taxpayer in a country other than Canada (referred to in this definition as the “business country”) means, subject to subsections (4.1) to (4.2), the portion of any income or profits tax paid by the taxpayer for the year to the government of a country other than Canada that can reasonably be regarded as tax in respect of the income of the taxpayer from a business carried on by the taxpayer in the business country, but does not include a tax, or the portion of a tax, that can reasonably be regarded as relating to an amount that (a) any other person or partnership has received or is entitled to receive from that government, or (b) was deductible under subparagraph 110(1)(f)(i) in computing the taxpayer’s taxable income for the year; ( impôt sur le revenu tiré d’une entreprise ) commercial obligation in respect of a taxpayer’s foreign oil and gas business in a country means an obligation of the taxpayer to a particular person, undertaken in the course of carrying on the business or in contemplation of the business, if the law of the country would have allowed the taxpayer to undertake an obligation, on substantially the same terms, to a person other than the particular person; ( obligation commerciale ) economic profit of a taxpayer in respect of a property for a period means the part of