Income Tax Act — I-3.3 66.21
section 66(15) apply in this section. Amount to be included in income (3) For the purpose of paragraph 59(3.2)(c.1), the amount referred to in this subsection in respect of a taxpayer for a taxation year is the amount, if any, by which (a) the total of all amounts referred to in the descriptions of E to J in the definition cumulative foreign resource expense in subsection (1) that are deducted in computing the taxpayer’s cumulative foreign resource expense at the end of the year in respect of a country exceeds the total of (b) the total of all amounts referred to in the descriptions of A to D in the definition cumulative foreign resource expense in subsection (1) that are included in computing the taxpayer’s cumulative foreign resource expense at the end of the year in respect of the country, and (c) the total determined under paragraph 66.7(13.2)(a) for the year in respect of the taxpayer and the country. Deduction for cumulative foreign resource expense (4) In computing a taxpayer’s income for a taxation year throughout which the taxpayer is resident in Canada, the taxpayer may deduct the amount claimed by the taxpayer, in respect of a country other than Canada, not exceeding the total of (a) the greater of (i) 10% of a particular amount equal to the taxpayer’s adjusted cumulative foreign resource expense in respect of the country at the end of the year, and (ii) the least of (A) if the taxpayer ceased to be resident in Canada immediately after the end of the year, the particular amount, (B) if clause (A) does not apply, 30% of the particular amount, (C) the amount, if any, by which the taxpayer’s foreign resource income for the year in respect of the country exceeds the portion of the amount, deducted under subsection 66(4) in computing the taxpayer’s income for the year, that applies to a source in the country, and (D) the amount, if any, by which (I) the total of all amounts each of which is the taxpayer’s foreign resource income for the year in respect of a country exceeds the total of (II) all amounts each of which is the taxpayer’s foreign resource loss for the year in respect of a country, and (III) the amount deducted under subsection 66(4) in computing the taxpayer’s income for the year, and (b) the lesser of (i) the amount, if any, by which the particular amount exceeds the amount determined for the year under paragraph (a) in respect of the taxpayer, and (ii) that portion of the taxpayer’s global foreign resource limit for the year that is designated for the year by the taxpayer, in respect of that country and no other country, in prescribed form filed with the Minister with the taxpayer’s return of income for the year. Individual changing residence (5) Where at any time in a taxation year an individual becomes or ceases to be resident in Canada, (a) subsection (4) applies to the individual as if the year were the period or periods in the year throughout which the individual was resident in Canada; and (b) for the purpose of applying this section, subsection 66(13.1) does not apply to the individual for the year. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2001, c. 17, s. 47; 2013, c. 34, s. 202