Income Tax Act — I-3.3 20
tely following taxation year, (i) was exempt from tax under any provision of this Part, or (ii) was not resident in Canada and did not carry on the business in Canada; (b) the sale occurred more than 36 months before the end of the year; (c) the purchaser of the property sold was a corporation that, immediately after the sale, (i) was controlled, directly or indirectly, in any manner whatever, by the taxpayer, (ii) was controlled, directly or indirectly, in any manner whatever, by a person or group of persons that controlled the taxpayer, directly or indirectly, in any manner whatever, or (iii) controlled the taxpayer, directly or indirectly, in any manner whatever; or (d) the purchaser of the property sold was a partnership in which the taxpayer was, immediately after the sale, a majority-interest partner. Application of para. (1)(cc) (9) In lieu of making any deduction of an amount permitted by paragraph 20(1)(cc) in computing a taxpayer’s income for a taxation year from a business, the taxpayer may, if the taxpayer so elects in prescribed manner, make a deduction of 1/10 of that amount in computing the taxpayer’s income for that taxation year and a like deduction in computing the taxpayer’s income for each of the 9 immediately following taxation years. Convention expenses (10) Notwithstanding paragraph 18(1)(b), there may be deducted in computing a taxpayer’s income for a taxation year from a business an amount paid by the taxpayer in the year as or on account of expenses incurred by the taxpayer in attending, in connection with the business, not more than two conventions held during the year by a business or professional organization at a location that may reasonably be regarded as consistent with the territorial scope of that organization. Foreign taxes on income from property exceeding 15% (11) In computing the income of an individual from a property other than real or immovable property for a taxation year after 1975 that is income from a source outside Canada, there may be deducted the amount, if any, by which, (a) such part of any income or profits tax paid by the taxpayer to the government of a country other than Canada for the year as may reasonably be regarded as having been paid in respect of an amount that has been included in computing the taxpayer’s income for the year from the property, exceeds (b) 15% of the amount referred to in paragraph 20(11)(a). Foreign non-business-income tax (12) In computing the income of a taxpayer who is resident in Canada at any time in a taxation year from a business or property for the year, there may be deducted any amount that the taxpayer claims that does not exceed the non-business-income tax paid by the taxpayer for the year to the government of a country other than Canada (within the meaning assigned by subsection 126(7) read without reference to paragraphs (c) and (e) of the definition non-business-income tax in that subsection) in respect of that income, other than any of those taxes paid that can, in whole or in part, reasonably be regarded as having been paid by a corporation in respect of income from a share of the capital stock of a foreign affiliate of the corporation. Foreign tax where no economic profit (12.1) In computing a taxpayer’s income for a taxation year from a business, there may be deducted the amount that the taxpayer claims not exceeding the lesser of (a) the amount of foreign tax (within the meaning assigned by subsection 126(4.1)) that (i) is in respect of a property used in the business for a period of ownership by the taxpayer or in respect of a related transaction (as defined in subsection 126(7)), (ii) is paid by the taxpayer for the year, (iii) is, because of subsection 126(4.1), not included in computing the taxpayer’s business-income tax or non-business-income tax, and (iv) where the taxpayer is a corporation, is not an amount that can reasonably be regarded as having been paid in respect of income from a share of the capital stock of a foreign