57.5 (1) Except as provided in subsections (3) and (4), the amount of a corporation’s pre-1994 loss that is deducted or deemed to be deducted for a taxation year under this Part is the lesser of, (a) the amount by which the corporation’s pre-1994 loss exceeds the total of all amounts, each of which is the amount of the corporation’s pre-1994 loss that was deducted or is deemed to have been deducted under this Part for a prior taxation year; or (b) the corporation’s adjusted net income for the taxation year.  1994, c. 14, s. 21 (1); 2004, c. 16, s. 2 (2). Deemed deduction of pre-1994 loss (2) For the purposes of determining the amount of a corporation’s pre-1994 loss to be deducted for a particular taxation year, the amount of the pre-1994 loss determined under subsection (1) for a prior taxation year shall be deemed to have been deducted under this Part for the prior taxation year whether or not the corporation was subject to tax imposed under this Part for the prior taxation year.  1994, c. 14, s. 21 (1); 2004, c. 16, s. 2 (2). Acquisition of control, pre-1994 loss (3) If at any time after 1993 control of a corporation has been acquired by a person or group of persons, the amount of the corporation’s pre-1994 loss to be deducted for a particular taxation year ending after that time shall include only those amounts otherwise included that may reasonably be regarded as a loss of the corporation from carrying on a business before that time, (a) if the same business was carried on by the corporation for profit or with a reasonable expectation of profit throughout the particular taxation year; and (b) to the extent of the aggregate of the portion of the corporation’s adjusted net income for the particular taxation year that is reasonably attributable to 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, to 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.  1994, c. 14, s. 21 (1); 2004, c. 16, s. 2 (2). Exception (4) Despite subsections (1) and (3), the amount of the deduction in respect of a corporation’s pre-1994 loss is nil for all taxation years of the corporation after the corporation’s first ten taxation years commencing after December 31, 1993.  1994, c. 14, s. 21 (1); 2004, c. 16, s. 2 (2). Eligible losses for a taxation year (5) Except as provided in subsection (7), the amount of a corporation’s eligible losses for a taxation year that is deducted or deemed to be deducted under this Part for the year is equal to the lesser of “A” and “B” where, “A” is the amount by which “C” exceeds “D” where, “C” is the sum of all amounts each of which is, (a) the corporation’s adjusted net loss for a prior taxation year that commenced after 1993, ended before March 23, 2007 and is not earlier than the tenth taxation year before the taxation year, or (b) the corporation’s adjusted net loss for a prior taxation year that ends after March 22, 2007 and is not earlier than the twentieth taxation year before the taxation year, and “D” is the sum of all amounts each of which is an amount included in the amount determined under clause (a) or (b) of the definition of “C” that was deducted or is deemed to have been deducted as an eligible loss under this Part for a prior taxation year, and “B” is the amount by which the corporation’s adjusted net income for the taxation year exceeds the amount, if any, of its pre-1994 loss that is deducted or deemed to be deducted for the taxation year.  2007, c. 7, Sched. 6, s. 6. Same (6) The following rules apply in determining the amount of a corporation’s eligible losses for a taxation year: 1. The amount of the corporation’s eligible losses for a prior taxation year shall be deemed to have been deducted under this Part for the prior taxation year whether or not the corporation was subject to tax imposed under this Part for the prior taxation year. 2. The corporation’s adjusted net loss for a particular taxation year that is otherwise included in the corporation’s eligible losses for the taxation year shall be deducted or deemed to be deducted under this Part before any amount in respect of the adjusted net loss of the corporation for a subsequent taxation year.  1994, c. 14, s. 21 (1); 2004, c. 16, s. 2 (2). Acquisition of control, eligible losses (7) If at any time control of a corporation has been acquired by a person or group of persons, the amount of the corporation’s eligible losses for a particular taxation year ending after that time shall include only those amounts otherwise included that may reasonably be regarded as the corporation’s losses from carrying on a business before that time, (a) if that business was carried on by the corporation for profit or with a reasonable expectation of profit throughout the particular taxation year; and (b) to the extent of the aggregate of the portion of the corporation’s adjusted net income for the particular taxation year that is reasonably attributable to 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, to 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, less the amount, if any, of the corporation’s pre-1994 loss that is deducted or deemed to be deducted for the particular taxation year.  1994, c. 14, s. 21 (1); 2004, c. 16, s. 2 (2). Amalgamation (8) If there has been an amalgamation of corporations to which section 87 of the Income Tax Act
(Canada) applies, the amalgamated corporation shall be deemed to be the same corporation as and a continuation of each predecessor corporation for the purposes of determining the amount of the amalgamated corporation’s, (a) pre-1994 loss; (b) pre-1994 loss that was deducted or is deemed to have been deducted under this Part for a prior taxation year; (c) eligible losses for a taxation year after the amalgamation; and (d) eligible losses for a taxation year that were deducted or are deemed to have been deducted under this Part for a prior taxation year.  1994, c. 14, s. 21 (1); 2004, c. 16, s. 2 (2). Exception (8.1) If an amalgamation of two or more predecessor corporations occurs after March 21, 2007, subsection (8) does not apply in determining for the purposes of the amalgamated corporation an amount in respect of one of the predecessor corporations if that predecessor corporation was controlled at any time before the amalgamation by any of the other predecessor corporations.  2008, c. 7, Sched. E, s. 10 (1). Winding-up (9) If the rules in subsection 88 (1) of the Income Tax Act (Canada) apply to the winding-up of a subsidiary corporation that was completed before March 22, 2007, the parent corporation is deemed to be the same corporation as and a continuation of the subsidiary corporation for the purposes of determining the amount of the parent corporation’s, (a) pre-1994 loss; (b) pre-1994 loss that was deducted or is deemed to have been deducted under this Part for a prior taxation year; (c) eligible losses for a taxation year after the winding-up; and (d) eligible losses for a taxation year that were deducted or are deemed to have been deducted under this Part for a prior taxation year.  1994, c. 14, s. 21 (1); 2004, c. 16, s. 2 (2); 2008, c. 7, Sched. E, s. 10 (2). Winding-up or dissolution of a Canadian affiliate of an entrant bank (10) If the events described in paragraphs 142.7 (12) (a) and (b) of the Income Tax Act (Canada) have occurred with respect to the winding-up of a Canadian affiliate of an entrant bank (within the meaning of subsection 142.7 (1) of that Act) or in respect of the dissolution of a Canadian affiliate of an entrant bank under a dissolution order (within the meaning of subsection 142.7 (12) of that Act), the entrant bank shall be deemed to be the same corporation as, and a continuation of, the Canadian affiliate for the purposes of determining the amount of the following losses of the entrant bank: 1. The pre-1994 loss. 2. The pre-1994 loss that was deducted or is deemed to have been deducted under this Part for a prior taxation year. 3. Eligible losses for a taxation year after the winding-up or dissolution. 4. Eligible losses for a taxation year that were deducted or are deemed to have been deducted under this Part for a prior taxation year.  2002, c. 22, s. 49; 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 27 (1). Exception (11) Subsection (10) does not apply unless, (a) before the later of the date determined under paragraph 142.7 (11) (b) of the Income Tax Act (Canada) and the day that is 180 days after the day the Budget Measures Act (Fall), 2004 receives Royal Assent, (i) the entrant bank and the Canadian affiliate jointly elect that subsection (10) applies, if the Canadian affiliate has not been wound up or dissolved before the election is made, or (ii) the entrant bank elects that subsection (10) applies, if the Canadian affiliate has been wound up or dissolved and ceases to exist before the election is made; or (b) the entrant bank and the Canadian affiliate have jointly elected under paragraph 142.7 (12) (c) of the Income Tax Act (Canada) to have section 142.7 of that Act apply.  2004, c. 31, Sched. 9, s. 27 (2). Application of subs. (10) (12) Subsection (10) applies only to, (a) taxation years for which an election by the affiliate and bank under paragraph 142.7 (12) (c) of the Income Tax Act (Canada) applies or to which section 142.7 of the Income Tax Act (Canada) would have applied if an election had been made under paragraph 142.7 (12) (c) of that Act; and (b) preceding taxation years in which a loss for the purposes of this section was incurred.  2004, c. 31, Sched. 9, s. 27 (2). Section Amendments with date in force (d/m/y) 1994, c. 14, s. 21 (1, 2) - 01/01/1994 2002, c. 22, s. 49
- 28/06/1999 2004, c. 16, s. 2 (2)
- 01/01/2004; 2004, c. 31, Sched. 9, s. 27 (1, 2) - 28/06/1999 2007, c. 7, Sched. 6, s. 6 - 17/05/2007 2008, c. 7, Sched. E, s. 10 (1, 2) - 21/03/2007