Income Tax Act — I-3.3 90
he lending time and the references in that subparagraph to “the dividend time” were references to the lending time. Add-back for subsection (9) deduction (12) There is to be included in computing the income of a corporation resident in Canada for a particular taxation year any amount deducted by the corporation under subsection (9) in computing the corporation’s income for the taxation year that immediately precedes the particular year. No double deduction (13) A corporation may not claim a deduction for a taxation year under subsection (9) in respect of the same portion of the specified amount in respect of a loan or indebtedness for which a deduction is claimed for that year or a preceding year by the corporation, or by a partnership of which the corporation is a member, under subsection (14). Repayment of loan (14) There may be deducted in computing the income of a taxpayer for a particular taxation year the amount determined by the formula A × B/C where A is the specified amount, in respect of a loan or indebtedness, that is included under subsection (6) in computing the taxpayer’s income for a preceding taxation year, B is the portion of the loan or indebtedness that was repaid in the particular year, to the extent it is established, by subsequent events or otherwise, that the repayment was not part of a series of loans or other transactions and repayments, and C is the amount, in respect of the loan or indebtedness, that is referred to in the description of A in the definition specified amount in subsection (15). Definitions (15) The following definitions apply in this section. eligible bank affiliate has the same meaning as in subsection 95(2.43). ( filiale bancaire admissible ) eligible Canadian bank has the same meaning as in subsection 95(2.43). ( banque canadienne admissible ) eligible Canadian indebtedness has the same meaning as in subsection 95(2.43). ( dettes canadiennes admissibles ) excess liquidity has the same meaning as in subsection 95(2.43). ( liquidités excédentaires ) specified amount , in respect of a loan or indebtedness that is required by subsection (6) to be included in computing the income of a taxpayer for a taxation year, means the amount determined by the formula A × (B – C) where A is the amount of the loan or indebtedness, and B is, in the case of (a) a creditor affiliate of the taxpayer, the percentage that is or would be, if the taxpayer referred to in subsection (6) were a corporation resident in Canada, the taxpayer’s surplus entitlement percentage (in this definition determined without reference to subsection 5908(1) of the Income Tax Regulations ) in respect of the creditor affiliate at the time (referred to in this definition as the “determination time”) referred to in subsection (6), or (b) a creditor partnership of which a foreign affiliate of the taxpayer is a member, the total of each percentage determined, in respect of a member (referred to in this paragraph as a “member affiliate”) of the creditor partnership that is a foreign affiliate of the taxpayer, by the formula D × E/F where D is the percentage that is or would be, if the taxpayer were a corporation resident in Canada, the taxpayer’s surplus entitlement percentage in respect of a particular member affiliate at the determination time, E is the fair market value, at the determination time, of the particular member affiliate’s direct or indirect interest in the creditor partnership, and F is the fair market value, at the determination time, of all interests in the creditor partnership, and C is, (a) if the debtor under the loan or indebtedness is (i) another foreign affiliate of the taxpayer, the percentage that is or would be, if the taxpayer were a corporation resident in Canada, the taxpayer’s surplus entitlement percentage in respect of the other affiliate at the determination time, or (ii) a partnership (referred to in this paragraph as the “borrower partnership”) of which one or more other foreign affiliates of the tax