Income Tax Act — I-3.3 125.3
may be, of similar properties or the rendering of similar services exceeds (B) the total of all amounts each of which is an amount deducted under paragraph 111(1)(a) or (d) for the particular year by the corporation in respect of a non-capital loss or a farm loss, as the case may be, for a taxation year in respect of that business or the other business, is of the greater of (ii) the amount determined under subparagraph 125.3(3)(a)(i), and (iii) the corporation’s taxable income for the particular year; and (b) where a business was carried on by the corporation throughout a taxation year ending after that time, its unused Part I.3 tax credit for that year is deductible by the corporation for a particular taxation year ending before that time only if that business was carried on by the corporation for profit or with a reasonable expectation of profit in the particular year and only to the extent of that proportion of the corporation’s Canadian surtax payable for the particular year that (i) the amount, if any, by which (A) the total of its income for the particular year from that business and, where properties were sold, leased, rented or developed or services rendered in the course of carrying on that business before that time, its income for the particular year from any other business substantially all the income of which was derived from the sale, leasing, rental or development, as the case may be, of similar properties or the rendering of similar services exceeds (B) the total of all amounts each of which is an amount deducted under paragraph 111(1)(a) or (d) for the particular year by the corporation in respect of a non-capital loss or a farm loss, as the case may be, for a taxation year in respect of that business or the other business, is of the greater of (ii) the amount determined under subparagraph 125.3(3)(b)(i), and (iii) the corporation’s taxable income for the particular year. Definitions (4) For the purposes of this section, Canadian surtax payable of a corporation for a taxation year means (a) in the case of a corporation that is non-resident throughout the year, the lesser of (i) the amount determined under section 123.2 in respect of the corporation for the year, and (ii) its tax payable under this Part for the year, and (b) in any other case, the lesser of (i) the prescribed proportion of the amount determined under section 123.2 in respect of the corporation for the year, and (ii) its tax payable under this Part for the year; ( surtaxe canadienne payable ) unused Part I.3 tax credit of a corporation for a taxation year means (a) where the year ended before 1992, the amount, if any, by which its tax payable under Part I.3 for the year exceeds the amount deductible under subsection 125.3(1) in computing its tax payable under this Part for the year, and (b) where the year ends after 1991, the amount, if any, by which the corporation’s tax payable under Part I.3 for the year (determined without reference to subsection 181.1(4)) exceeds its Canadian surtax payable under this Part for the year. ( crédit d’impôt de la partie I.3 inutilisé ) [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 125.3; 1994, c. 7, Sch. VIII, s. 66, c. 21, s. 59; 2013, c. 34, s. 266