57.4 (1) In this Part, a corporation’s adjusted net income for a taxation year is the amount, if any, by which, “A” exceeds “B” and its adjusted net loss for a taxation year is the amount, if any, by which “B” exceeds “A”, where, “A” is the sum of, (a) the amount of the corporation’s net income, if any, for the taxation year, (b) if the corporation would have been entitled to exclude a gain from its taxable income earned in Canada under subsection 37 (2) in respect of the disposition of taxable Canadian property, the amount of any loss in respect of the disposition to the extent the loss has been taken into consideration in the calculation of the corporation’s net income or net loss, as the case may be, for the taxation year, (c) all amounts included in the computation of the corporation’s income for the purposes of Part II by reason of section 135 of the Income Tax Act (Canada), as made applicable by Part II, to the extent the amounts have not been taken into consideration in the calculation of the corporation’s net income or net loss, as the case may be, for the taxation year or a prior taxation year, and (d) such other amounts as may be determined in accordance with the regulations, and “B” is the sum of, (a) the amount of the corporation’s net loss, if any, for the taxation year, (b) the total amount of the payments made pursuant to allocations in proportion to patronage to the extent that the amount is deductible under section 135 of the Income Tax Act
(Canada) in computing the corporation’s income for the taxation year for the purposes of that Act, and has not been deducted in computing the corporation’s net income or net loss, as the case may be, for the taxation year, (c) each of the following amounts to the extent it has been included in the computation of the corporation’s net income or net loss, as the case may be, for the year: (i) an amount received or receivable by the corporation during the taxation year that is deductible as an amount in respect of a dividend under section 112 or 113 or subsection 138 (6) of the Income Tax Act
(Canada), as made applicable under Part II, in determining the corporation’s taxable income for the taxation year in which the amount is received by the corporation, (ii) an amount in respect of a dividend received or receivable by the corporation during the taxation year that is excluded under subsection 83 (2) of the Income Tax Act (Canada) in the computation of the income of the corporation for the purposes of Part I of that Act, (iii) if the corporation is entitled to exclude an amount from its taxable income earned in Canada under subsection 37 (2) in respect of the disposition of taxable Canadian property, the amount of any gain in respect of the disposition, (iv) the amount, if any, of the corporation’s income for the taxation year described in paragraph 81 (1) (c) of the Income Tax Act
(Canada), (v) the amount of any gain in respect of the disposition of property by the corporation after May 1, 2006, if the disposition is described in subparagraph 38 (a.1) (i) or (a.2) (i) of the Income Tax Act (Canada), and (vi) the amount of any gain in respect of a disposition of property by the corporation that is described in subparagraph 38 (a.1) (iii) or paragraph 38 (a.3) of the Income Tax Act (Canada) if the gift to a qualified donee for the purposes of that provision occurs on or after February 26, 2008, (d) an amount equal to 9/4 of the amount of tax payable by the corporation for the taxation year under subsection 191.1 (1) of the Income Tax Act (Canada) if the taxation year ends before January 1, 2003, (e) an amount equal to three times the amount of tax payable by the corporation for the taxation year under subsection 191.1 (1) of the Income Tax Act (Canada) if the taxation year ends after December 31, 2002, and (f) such other amounts as may be determined in accordance with the regulations.  2008, c. 7, Sched. E, s. 9 (1); 2008, c. 19, Sched. C, s. 2. Dividends (1.1) Despite subsection 57.1 (2), no dividend paid or payable by a corporation in a taxation year, other than an amount referred to in subsection 137 (4.1) of the Income Tax Act
(Canada), shall be deducted in determining whether the corporation has a net income of nil or more for the taxation year for the purposes of clause (a) of the definition of “A” in subsection (1) or a net loss for the taxation year for the purposes of clause (a) of the definition of “B” in subsection (1).  1997, c. 43, Sched. A, s. 26 (3); 2004, c. 16, s. 2 (2); 2009, c. 33, Sched. 16, s. 3. Interest (1.2) In computing its adjusted net income or adjusted net loss for a taxation year under subsection (1) or (2), a corporation may deduct the amount of any interest paid or payable by the corporation that is included in an amount deducted or deductible by the corporation in the taxation year under paragraph 20 (1) (c) or (d) of the Income Tax Act (Canada), as made applicable for the purposes of this Act, to the extent that the amount of interest has not been deducted in computing the corporation’s net income or net loss under subsection 57.1 (2).  1999, c. 9, s. 84; 2004, c. 16, s. 2 (2). Same (1.3) Subsection (1.2) applies with respect to interest incurred after May 4, 1999.  1999, c. 9, s. 84; 2004, c. 16, s. 2 (2). (2) Repealed:  2008, c. 7, Sched. E, s. 9 (2). Corporate partner (3) If a corporation is a member of a partnership during a taxation year, the corporation’s adjusted net income or adjusted net loss for the taxation year includes the same proportion of the partnership’s adjusted net income or adjusted net loss for each fiscal period of the partnership ending in the taxation year as the proportion of the income or loss of the partnership that is allocable to the corporation as a partner in the partnership.  1994, c. 14, s. 21 (1); 2001, c. 23, s. 39; 2004, c. 16, s. 2 (2). Adjusted net income or loss of partnership (4) The adjusted net income or adjusted net loss of a partnership shall be computed for the purposes of this Part under the provisions of this Part, with such modifications as the circumstances require, as if the partnership were a corporation and the taxation year of the partnership were its fiscal period.  1994, c. 14, s. 21 (1); 2004, c. 16, s. 2 (2). Same (5) Despite subsection (4), no amount shall be deducted nor included more than once in the calculation of the adjusted net income or adjusted net loss of a corporation that is a member of a partnership.  1994, c. 14, s. 21 (1); 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 1994, c. 14, s. 21 (1, 2) - 01/01/1994; 1997, c. 43, Sched. A, s. 26 (1) - 01/01/1994; 1997, c. 43, Sched. A, s. 26 (2-5) - 06/05/1997; 1999, c. 9, s. 84 - 05/05/1999 2001, c. 23, s. 39 - 05/12/2001 2004, c. 16, s. 2 (2)
- 01/01/2004 2006, c. 33, Sched. G, s. 6 - 01/05/2006 2008, c. 7, Sched. E, s. 9 (1, 2) - 01/01/2003; 2008, c. 19, Sched. C, s. 2 - 26/02/2008 2009, c. 33, Sched. 16, s. 3 (1, 2) - 15/12/2009