Income Tax Act — I-3.3 128
r, no deduction were allowed (A) under any of sections 118 to 118.07, 118.2, 118.3, 118.5, 118.8 and 118.9, (B) under section 118.1 with respect to a gift made by the individual on or after the day the individual became bankrupt, (B.1) under section 118.62 with respect to interest paid on or after the day on which the individual became bankrupt, and (C) under subsection 127(5) with respect to an expenditure incurred or property acquired by the individual in any taxation year that ends after the individual was discharged absolutely from bankruptcy, and the trustee is liable to pay any tax so determined for that taxation year; (f) notwithstanding paragraph 128(2)(e), the individual shall file a separate return of the individual’s income for any taxation year during which the individual was a bankrupt, computed as if (i) the income required to be reported in respect of the year by the trustee under paragraph 128(2)(e) was not the income of the individual, (ii) in computing income, the individual was not entitled to deduct any loss sustained by the trustee in the year in dealing with the estate of the bankrupt or in carrying on the business of the bankrupt, (iii) in computing the individual’s taxable income for the year, no amount were deductible under any of paragraphs 110(1)(d) to (d.3) and sections 110.6, 110.61 and 110.62 in respect of an amount included in income under subparagraph (e)(i), and no amount were deductible under section 111, and (iv) in computing the individual’s tax payable under this Part for the year, no amount were deductible under (A) section 118.1 in respect of a gift made before the day on which the individual became bankrupt, (B) section 118.62 in respect of interest paid before the day on which the individual became bankrupt, or (C) section 118.61 or 120.2 or subsection 127(5), and the individual is liable to pay any tax so determined for that taxation year; (g) notwithstanding subparagraphs 128(2)(e)(ii) and 128(2)(e)(iii) and 128(2)(f)(iii) and 128(2)(f)(iv), where at any time an individual was discharged absolutely from bankruptcy, (i) in computing the individual’s taxable income for any taxation year that ends after that time, no amount shall be deducted under section 111 in respect of losses for taxation years that ended before that time, (ii) in computing the individual’s tax payable under this Part for any taxation year that ends after that time, (A) no amount shall be deducted under section 118.61 or 120.2 in respect of an amount for any taxation year that ended before that time, (B) no amount shall be deducted under section 118.1 in respect of a gift made before the individual became bankrupt, (B.1) no amount shall be deducted under section 118.62 in respect of interest paid before the day on which the individual became bankrupt, and (C) no amount shall be deducted under subsection 127(5) in respect of an expenditure incurred or a property acquired by the individual in any taxation year that ended before that time, and (iii) the individual’s unused tuition, textbook and education tax credits (as determined under subsection 118.61(1)) at the end of the last taxation year that ended before that time is deemed to be nil; (h) where, in a taxation year commencing after an order of discharge has been granted in respect of the individual, the trustee deals in the estate of the individual who was a bankrupt or performs any act in the carrying on of the business of the individual, paragraphs 128(2)(e), 128(2)(f) and 128(2)(g) shall apply as if the individual were a bankrupt in the year; and (i) the portion of the individual’s non-capital loss for a particular taxation year in which paragraph 128(2)(e) applied in respect of the individual and any preceding taxation year that does not exceed the lesser of (i) the amount of the individual’s allowable business investment losses for the particular taxation year, and (ii) any portion of the individual’s non-capital loss for that particular year that was not de