Income Tax Act — I-3.3 127
three fiscal years immediately preceding and ending in the last calendar year that ended before the end of the particular taxation year, of annual revenue reflected in the financial statements of each corporation that is a member of the group; and (d) the annual revenue described in paragraph (c) (i) must include each corporation’s reasonable share of annual revenue reflected in the financial statements of any partnership or trust in which the corporation held an interest, and (ii) may include reasonable adjustments to reflect the annual revenue of the group as that of a single economic entity. Failure to file agreement (10.4) If any of the Canadian-controlled private corporations that are associated with each other in a taxation year fails to file with the Minister an agreement as contemplated by subsection 127(10.3) within 30 days after notice in writing by the Minister is forwarded to any of them that such an agreement is required for the purposes of this Part, the Minister shall, for the purpose of subsection 127(10.1), allocate an amount to one or more of them for the year, which amount or the total of which amounts, as the case may be, shall equal the amount determined for the year by the formula in subsection 127(10.2), and in any such case the expenditure limit for the year of each of the corporations is the amount so allocated to it. Expenditure limit determination in certain cases (10.5) Notwithstanding any other provision of this section, (a) where a Canadian-controlled private corporation (in this paragraph referred to as the “first corporation”) has more than one taxation year ending in the same calendar year and it is associated in two or more of those taxation years with another Canadian-controlled private corporation that has a taxation year ending in that calendar year, the expenditure limit of the first corporation for each taxation year in which it is associated with the other corporation ending in that calendar year is, subject to the application of paragraph (b), an amount equal to its expenditure limit for the first such taxation year determined without reference to paragraph (b); and (b) where a Canadian-controlled private corporation has a taxation year that is less than 51 weeks, its expenditure limit for the year is that proportion of its expenditure limit for the year determined without reference to this paragraph that the number of days in the year is of 365. Expenditure limit — ECPC (10.6) For the purpose of subsection (10.1), a particular eligible Canadian public corporation’s expenditure limit for a particular taxation year is the amount determined by the formula $6 million × [($60 million − A) ÷ $60 million] where A is (a) nil, if the following amount is less than or equal to $15 million: (i) if the particular corporation is not a member of a consolidated group in the particular taxation year, the amount that is the average, over the period of three fiscal years immediately preceding and ending before the particular taxation year, of its annual revenue based on the amounts reflected in the financial statements of the corporation, and (ii) if the particular corporation is a member of a consolidated group in the particular taxation year, the amount that is the average, over the period of three fiscal years immediately preceding and ending before the particular taxation year, of the annual revenue reflected in the consolidated financial statements of the group, and (b) in any other case, the lesser of $60 million and the amount by which the amount determined under subparagraph (a)(i) or (ii), as the case may be, exceeds $15 million. Expenditure limits — consolidated ECPCs (10.61) Despite subsection (10.6), the expenditure limit for a taxation year of an eligible Canadian public corporation that is, at any time in the year, a member of a consolidated group is, except as otherwise provided in this section, nil. Consolidated ECPCs (10.62) If all of the eligible Canadian public corporations that are me