Income Tax Application Rules — I-3.31 58
redit union in a taxation year ending before 1972, the capital cost of the property shall be its capital cost determined without reference to paragraph (1)(c). Determination of maximum cumulative reserve at end of taxation year (3.2) Notwithstanding the definition maximum cumulative reserve in subsection 137(6) of the amended Act, for the purposes of section 137 of the amended Act a credit union’s maximum cumulative reserve at the end of any particular taxation year is the amount, if any, by which its maximum cumulative reserve at that time, determined under that definition without regard to this subsection, exceeds the lesser of (a) its maximum cumulative reserve, determined under that definition without regard to this subsection, at the end of its 1971 taxation year, and (b) the amount, if any, by which its 1971 reserve exceeds the total of the amounts deemed by subsection 58(2) of the Income Tax Application Rules, 1971 , Part III of chapter 63 of the Statutes of Canada, 1970-71-72, to have been deducted by it in computing its income for its 1971 taxation year. Idem (3.3) Notwithstanding subsection (3.2), where at any time after May 6, 1974 there has been an amalgamation (within the meaning assigned by section 87 of the amended Act) of two or more credit unions to form a new credit union, the maximum cumulative reserve of the new credit union shall be deemed to be the amount by which its maximum cumulative reserve, determined under the definition of that term in subsection 137(6) of the amended Act, exceeds the total of all amounts, if any, each of which is the lesser of the amounts referred to in paragraphs (3.2)(a) and (b) in respect of each of the predecessor corporations. Idem (3.4) Notwithstanding subsection (3.2), where a credit union (in this subsection referred to as the acquirer) has, at any time after May 6, 1974, acquired otherwise than by way of amalgamation all of substantially all of the assets of another credit union, the maximum cumulative reserve of the acquirer shall be the amount by which the acquirer’s maximum cumulative reserve, determined under the definition of that term in subsection 137(6) of the amended Act, exceeds the total of (a) the lesser of the amounts determined under paragraphs (3.2)(a) and (b) in respect of the acquirer, and (b) the lesser of the amounts determined under paragraphs (3.2)(a) and (b) in respect of the other credit union. Definitions (5) In this section, depreciable cost to a credit union of any property means the actual cost to it of the property or the amount at which it is deemed by subsection 13(7) of the amended Act to have acquired the property, as the case may be; ( coût amortissable ) relevant percentage in relation to a prescribed class of property is the percentage prescribed in respect of that class by any regulations made under paragraph 11(1)(a) of the former Act; ( pourcentage approprié ) 1971 reserve of a credit union means the amount, if any, by which the total of all amounts each of which is (a) the amount of any money of the credit union on hand at the beginning of its 1972 taxation year, (b) an amount in respect of any property described in paragraph (1)(a) or (b), equal to the amount at which it is required by those paragraphs to be valued at the beginning of its 1972 taxation year, (c) an amount in respect of depreciable property of a prescribed class owned by the credit union on the first day of its 1972 taxation year, equal to the amount determined under paragraph (1)(d) to be the undepreciated capital cost thereof to the credit union as of that day, or (d) an amount in respect of any capital property (other than depreciable property) owned by the credit union at the beginning of its 1972 taxation year, equal to its cost to the credit union computed without reference to the provisions of section 26, exceeds the total of all amounts each of which is (e) the amount of any debt owing by the credit union or of any other obligation of the credit union to pay