35 (1) The Minister may direct that the maximum amount that may be deducted by a corporation in a taxation year under paragraph 111 (1) (a) of the Income Tax Act (Canada), as applicable for the purposes of this Act, in respect of a non-capital loss incurred in a particular taxation year, shall not exceed the amount determined under subsection (2) if, (a) the corporation deducted an amount under any of sections 12, 13, 13.1, 13.2, 13.3, 13.4 and 13.5 in determining the amount of its non-capital loss for the particular taxation year and the Ontario allocation factor of the corporation for the taxation year in which an amount in respect of the loss is to be deducted is greater than 120 per cent of the Ontario allocation factor for the particular taxation year in which the loss was incurred; or (b) the Minister has directed the maximum amount deductible in respect of the loss for a prior taxation year.  R.S.O. 1990, c. C.40, s. 35 (1); 1997, c. 43, Sched. A, s. 16; 1998, c. 34, s. 37 (1, 2); 1999, c. 9, s. 80 (1); 2000, c. 42, s. 14 (1); 2004, c. 16, s. 2 (2). Maximum amount (2) If the Minister makes a direction under subsection (1) in respect of a loss to be deducted in a taxation year of a corporation, the maximum amount that may be deducted by the corporation in respect of a non-capital loss incurred in a particular taxation year shall be determined according to the following formula: D = (A + B) – C where: “D” is the maximum amount deductible by the corporation in the taxation year in respect of the non-capital loss incurred in the particular taxation year; “A” is the amount by which the non-capital loss for the particular taxation year exceeds the total of any amounts deducted under any of sections 12, 13, 13.1, 13.2, 13.3, 13.4 and 13.5 for the particular taxation year; “B” is the allocation adjustment as determined under clause (3) (c); and “C” is the aggregate of all amounts, each of which is the amount by which the non-capital loss deducted under paragraph 111 (1) (a) of the Income Tax Act
(Canada), as applicable for the purposes of this Act, in computing the taxable income of the corporation for a prior taxation year, exceeds the allocation adjustment in respect of the loss for the prior taxation year. R.S.O. 1990, c. C.40, s. 35 (2); 1998, c. 5, s. 9 (1); 1998, c. 34, s. 37 (3, 4); 1999, c. 9, s. 80 (2); 2000, c. 42, s. 14 (2); 2004, c. 16, s. 2 (2). Idem (3) For the purposes of this section, (a) “Ontario allocation factor” has the same meaning as in subsection 12 (1); (b) the allocation factor for the taxation year in which the loss arose is the allocation factor of the corporation that incurred the loss in that year; (c) the allocation adjustment is the product obtained where the amount of a non-capital loss incurred in a particular taxation year attributable to amounts deducted under any of sections 12, 13, 13.1, 13.2, 13.3, 13.4 and 13.5 is multiplied by the ratio of the Ontario allocation factor for the particular taxation year to the Ontario allocation factor for the year for which the allocation adjustment is being determined; and (d) the amount of a non-capital loss incurred in a particular taxation year which is attributable to amounts deducted under any of sections 12, 13, 13.1, 13.2, 13.3, 13.4 and 13.5 is the amount by which the lesser of, (i) the non-capital loss for the particular taxation year, or (ii) the total of all amounts, each of which is an amount deducted under any of sections 12, 13, 13.1, 13.2, 13.3, 13.4 and 13.5, exceeds, (iii) the aggregate of all amounts, each of which is the amount deducted under paragraph 111 (1) (a) of the Income Tax Act (Canada), as applicable for the purposes of this Act, in computing its taxable income for a taxation year prior to the taxation year for which the allocation adjustment is being determined, in respect of the non-capital loss incurred in the particular taxation year, multiplied by the ratio of the Ontario allocation factor for the taxation year in which the amount in respect of the loss was deducted to the Ontario allocation factor for the particular taxation year in which the loss was incurred.  R.S.O. 1990, c. C.40, s. 35 (3); 1998, c. 5, s. 9 (2); 1998, c. 34, s. 37 (5, 6); 1999, c. 9, s. 80 (3); 2000, c. 42, s. 14 (3); 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 1997, c. 43, Sched. A, s. 16 - 07/05/1997; 1998, c. 5, s. 9 (1, 2) - 26/06/1998; 1998, c. 34, s. 37 (1, 3, 5) - 06/05/1998; 1998, c. 34, s. 37 (2, 4, 6) - 01/07/1998; 1999, c. 9, s. 80 (1-3) - 05/05/1999 2000, c. 42, s. 14 (1-3)
- 03/05/2000 2004, c. 16, s. 2 (2)
- 01/01/2004