Income Tax Regulations — 5202
5202 In this Part, except as otherwise provided in section 5203 or 5204, adjusted business income of a corporation for a taxation year means the amount, if any, by which (a) the aggregate of all amounts each of which is the income of the corporation for the year from an active business carried on in Canada exceeds (b) the aggregate of all amounts each of which is the loss of the corporation for the year from an active business carried on in Canada; ( revenu rajusté tiré d’une entreprise ) Canadian resource profits has the meaning that would be assigned to the expression resource profits by section 1204 if (a) section 1204 were read without reference to subparagraph 1204(1)(b)(iv), and (b) the definition resource activity in subsection 1206(1) were read without reference to paragraph (d) of that definition; ( bénéfices relatifs à des ressources au Canada ) cost of capital of a corporation for a taxation year means an amount equal to the aggregate of (a) 10 per cent of the aggregate of all amounts each of which is the gross cost to the corporation of a property referred to in paragraph 1100(1)(e), (f), (g) or (h), paragraph 1102(1)(d) or (g) or Schedule II that (i) was owned by the corporation at the end of the year, and (ii) was used by the corporation at any time during the year, and (b) the aggregate of all amounts each of which is the rental cost incurred by the corporation during the year for the use of any property a portion of the gross cost of which would be included by virtue of paragraph (a) if the property were owned by the corporation at the end of the year, but for the purposes of this definition, the gross cost of a property or rental cost for the use of any property does not include that portion of those costs that reflects the extent to which the property was used by the corporation during the year (c) in an active business carried on outside Canada, or (d) to earn Canadian investment income or foreign investment income as defined in subsection 129(4) of the Act; ( coût en capital ) cost of labour of a corporation for a taxation year means an amount equal to the aggregate of (a) the salaries and wages paid or payable during the year to all employees of the corporation for services performed during the year, and (b) all other amounts each of which is an amount paid or payable during the year for the performance during the year, by any person other than an employee of the corporation, of functions relating to (i) the management or administration of the corporation, (ii) scientific research and experimental development, or (iii) a service or function that would normally be performed by an employee of the corporation, but for the purposes of this definition, the salaries and wages referred to in paragraph (a) or other amounts referred to in paragraph (b) do not include that portion of those amounts that (c) was included in the gross cost to the corporation of a property (other than a property that was manufactured by the corporation and leased during the year by the corporation to another person) that was included in computing the cost of capital of the corporation for the year, or (d) was related to an active business carried on outside Canada by the corporation; ( coût en main-d’oeuvre ) cost of manufacturing and processing capital of a corporation for a taxation year means 100/85 of that portion of the cost of capital of the corporation for that year that reflects the extent to which each property included in the calculation thereof was used directly in qualified activities of the corporation during the year, but the amount so calculated shall not exceed the cost of capital of the corporation for the year; ( coût en capital de fabrication et de transformation ) cost of manufacturing and processing labour of a corporation for a taxation year means 100/75 of that portion of the cost of labour of the corporation for that year that reflects the extent to which (a) the salaries and wages included in the calculation the