Income Tax Act — I-3.3 126
4 applies to the taxpayer in respect of the year, the total of the taxpayer’s income for the period or periods referred to in paragraph 114(a) and the amount that would be determined under paragraph 114(b) in respect of the taxpayer for the year if subsection 115(1) were read without reference to paragraphs 115(1)(d) to 115(1)(f) exceeds (C) the taxpayer’s income earned in the year in a province (within the meaning assigned by subsection 120(4)). Non-resident’s foreign tax deduction (2.2) If at any time in a taxation year a taxpayer who is not at that time resident in Canada disposes of a property that was deemed by subsection 48(2), as it read in its application before 1993, or by paragraph 128.1(4)(e), as it read in its application before October 2, 1996, to be taxable Canadian property of the taxpayer, the taxpayer may deduct from the tax for the year otherwise payable under this Part by the taxpayer an amount equal to the lesser of (a) the amount of any non-business-income tax paid by the taxpayer for the year to the government of a country other than Canada that can reasonably be regarded as having been paid by the taxpayer in respect of any gain or profit from the disposition of the property, and (b) that proportion of the tax for the year otherwise payable under this Part by the taxpayer that (i) the taxable capital gain from the disposition of that property is of (ii) if the taxpayer is non-resident throughout the year, the taxpayer’s taxable income earned in Canada for the year determined without reference to paragraphs 115(1)(d) to (f), and (iii) if the taxpayer is resident in Canada at any time in the year, the amount that would have been the taxpayer’s taxable income earned in Canada for the year if the part of the year throughout which the taxpayer was non-resident were the whole taxation year. Former resident — deduction (2.21) If at any particular time in a particular taxation year a non-resident individual disposes of a property that the individual last acquired because of the application, at any time (in this subsection referred to as the “acquisition time”) after October 1, 1996, of paragraph 128.1(4)(c), there may be deducted from the individual’s tax otherwise payable under this Part for the year (in this subsection referred to as the “emigration year”) that includes the time immediately before the acquisition time an amount not exceeding the lesser of (a) the total of all amounts each of which is the amount of any business-income tax or non-business-income tax paid by the individual for the particular year (i) where the property is real or immovable property situated in a country other than Canada, (A) to the government of that country, or (B) to the government of a country with which Canada has a tax treaty at the particular time and in which the individual is resident at the particular time, or (ii) where the property is not real or immovable property, to the government of a country with which Canada has a tax treaty at the particular time and in which the individual is resident at the particular time, that can reasonably be regarded as having been paid in respect of that portion of any gain or profit from the disposition of the property that accrued while the individual was resident in Canada and before the time the individual last ceased to be resident in Canada, and (b) the amount, if any, by which (i) the amount of tax under this Part that was, after taking into account the application of this subsection in respect of dispositions that occurred before the particular time, otherwise payable by the individual for the emigration year exceeds (ii) the amount of such tax that would have been payable if the property had not been deemed by subsection 128.1(4) to have been disposed of in the emigration year. Former resident — trust beneficiary (2.22) If at any particular time in a particular taxation year a non-resident individual disposes of a property that the individual last acquired at any time (in this