57.1 (1) In this Part, “amalgamated corporation” means a corporation that is a “new corporation” for the purposes of section 87 of the Income Tax Act (Canada); (“société issue de la fusion”) “associated corporation”, of another corporation for a taxation year, means a corporation that is associated at any time in the taxation year with the other corporation, whether or not either of them is subject to tax under this Act; (“société associée”) “excluded mark-to-market property” means, in respect of a corporation, property, other than specified mark-to-market property, held by the corporation and in respect of which, (a) any mark-to-market changes recognized under generally accepted accounting principles from the beginning to the end of a taxation year of the corporation would be reflected in the calculation of the corporation’s income for the taxation year for the purposes of Part II if the property were held by the corporation throughout the taxation year, or (b) if the property is denominated in a foreign currency, any change under generally accepted accounting principles in the value of that currency relative to Canadian currency from the beginning to the end of a taxation year of the corporation would be reflected in the calculation of the corporation’s income for the taxation year for the purposes of Part II if the property were held by the corporation throughout the taxation year; (“bien évalué à la valeur du marché qui est exclu”) “fair value” means, in respect of property of a corporation, the amount determined in accordance with generally accepted accounting principles that is the fair value of the property to the corporation, expressed in Canadian currency; (“juste valeur”) “mark-to-market changes” means, with respect to a specified mark-to-market property or excluded mark-to-market property held by a corporation, changes in the fair value of the property that occur after the corporation acquires the property and before the corporation disposes of the property; (“variation de l’évaluation à la valeur du marché”) “parent corporation” means a corporation that is a “parent” under subsection 88 (1) of the Income Tax Act
(Canada); (“société mère”) “pre-1994 loss”, of a corporation, is the amount by which the total of the corporation’s adjusted net losses, if any, for its last three taxation years ending before its first taxation year commencing after 1993 exceed the total of its adjusted net incomes, if any, for the same years; (“perte antérieure à 1994”) “predecessor corporation” means a corporation that is a predecessor corporation referred to in section 87 of the Income Tax Act (Canada) and includes a corporation that was a predecessor corporation of a predecessor corporation; (“société remplacée”) “specified mark-to-market property” means, in respect of a corporation, property, other than excluded mark-to-market property, held by the corporation and in respect of which, (a) any mark-to-market changes recognized under generally accepted accounting principles from the beginning to the end of a taxation year of the corporation would be reflected in the calculation of the corporation’s net income for the taxation year for the purposes of this Part if the property were held by the corporation throughout the taxation year, or (b) if the property is denominated in a foreign currency, any change under generally accepted accounting principles in the value of that currency relative to Canadian currency from the beginning to the end of a taxation year of the corporation would be reflected in the calculation of the corporation’s net income for the taxation year for the purposes of this Part if the property were held by the corporation throughout the taxation year; (“bien évalué à la valeur du marché qui est déterminé”) “subsidiary corporation” means a corporation that is a “subsidiary” under subsection 88 (1) of the Income Tax Act (Canada); (“filiale”) “total assets” means, subject to subsection (1.1), the amount that would be shown on a corporation’s balance sheet at the end of a taxation year as the corporation’s total assets if the balance sheet were prepared in accordance with generally accepted accounting principles, except that the consolidation and equity methods of accounting are not to be used; (“actif total”) “total revenue”, of a corporation for a taxation year, means the amount that would be its gross revenue for the taxation year as determined in accordance with generally accepted accounting principles, except that the consolidation and equity methods of accounting shall not be used. (“recettes totales”)  1994, c. 14, s. 21 (1); 2004, c. 16, s. 2 (2); 2008, c. 7, Sched. E, s. 8 (1, 2). Adjustment to total assets re: specified mark-to-market property (1.1) The amount in respect of a specified mark-to-market property to be included in the total assets of a corporation for a taxation year for the purposes of this Part is determined without reference to mark-to-market changes with respect to the specified mark-to-market property if, (a) the taxation year ends after March 22, 2007; or (b) the  taxation year begins after June 30, 2004 and ends before March 23, 2007, and the corporation made an election before February 26, 2008 to have section 1 of Ontario Regulation 509/07 (Corporate Minimum Tax) made under this Act apply to all of the corporation’s taxation years beginning after June 30, 2004 and ending before March 23, 2007.  2008, c. 7, Sched. E, s. 8 (3). Net income or net loss (2) The net income or net loss of a corporation for a taxation year is, (a) in the case of a corporation to which subsection 2 (1) applies, other than a life insurance corporation or a bank, the amount that would be its net income or net loss, before any income taxes, for the fiscal period coinciding with the taxation year, as determined in accordance with generally accepted accounting principles, except that the consolidation and equity methods of accounting shall not be used; (b) in the case of a corporation to which subsection 2 (2) applies, other than a life insurance corporation or a bank, the amount that would be its net income or net loss before any income taxes for the fiscal period coinciding with the taxation year, as determined in accordance with generally accepted accounting principles, except that the consolidation and equity methods of accounting shall not be used, from, (i) carrying on a business in Canada, and (ii) property situated in Canada or used in carrying on a business in Canada, including any gains or losses from a disposition of the property or an interest in it; (c) in the case of a life insurance corporation resident in Canada during the taxation year that carries on business both in and outside Canada during the taxation year, the amount determined according to the following formula: A = B/C × D where: “A” is the amount of the life insurance corporation’s net income or net loss for the taxation year, “B” is the amount of the life insurance corporation’s Canadian reserve liabilities as at the end of the taxation year, as determined under subsection 2405 (3) of the regulations made under the Income Tax Act (Canada), “C” is the amount of the life insurance corporation’s total reserve liabilities as at the end of the taxation year, as determined under subsection 2405 (3) of the regulations made under the Income Tax Act (Canada), and “D” is the amount of the life insurance corporation’s net income or net loss for the fiscal period coinciding with the taxation year, before the deduction of any income taxes and any tax payable under section 74.1, as reported in its annual report accepted by the relevant authority, as defined in section 138 of the Income Tax Act
(Canada), or where the fiscal period does not coincide with the taxation year, a report prepared for the taxation year in accordance with the principles required by the relevant authority, adjusted if necessary so that the consolidation and equity methods of accounting are not used; (d) in the case of a life insurance corporation other than a corporation referred to in clause (c), the amount of the life insurance corporation’s net income or net loss for the fiscal period coinciding with the taxation year, before the deduction of any income taxes and any tax payable under section 74.1, as reported in its annual report accepted by the relevant authority, as defined in section 138 of the Income Tax Act
(Canada), or where the fiscal period does not coincide with the taxation year, a report prepared for the taxation year in accordance with the principles required by the relevant authority, adjusted if necessary so that the consolidation and equity methods of accounting are not used; or (e) in the case of a bank, the amount of its net income or net loss for the fiscal period coinciding with the taxation year, before any income taxes, as reported in its annual report accepted by the Superintendent of Financial Institutions under the Bank Act (Canada), or where the fiscal period does not coincide with the taxation year, a report prepared for the taxation year in accordance with the principles required by the Superintendent of Financial Institutions, adjusted if necessary so that the consolidation and equity methods of accounting are not used.  1994, c. 14, s. 21 (1); 2004, c. 16, s. 2 (2). Total revenue of corporate partner (3) If a corporation is a member of a partnership during a taxation year, the corporation’s total revenue for the taxation year includes the same proportion of the total revenue of the partnership for each fiscal period of the partnership ending in the taxation year as the proportion of the income or loss of the partnership to which the corporation is entitled as a partner of the partnership.  1994, c. 14, s. 21 (1); 2001, c. 23, s. 38; 2004, c. 16, s. 2 (2). Total assets of corporate partner (4) If a corporation is a member of a partnership at the end of a taxation year, the amount of its total assets at the end of the taxation year includes, in lieu of the amount of its investment in the partnership, the same proportion of the total assets of the partnership at the end of the partnership’s last fiscal period ending in the taxation year, as the proportion of the income or loss of the partnership to which the corporation is entitled as a partner in the partnership.  1994, c. 14, s. 21 (1); 2001, c. 23, s. 38; 2004, c. 16, s. 2 (2). Partnership (5) Subject to subsection (5.1), a partnership’s net income or net loss and its total assets and total revenue shall be determined in accordance with generally accepted accounting principles, except that the consolidation and equity methods of accounting shall not be used.  1994, c. 14, s. 21 (1); 2004, c. 16, s. 2 (2); 2008, c. 7, Sched. E, s. 8 (4). Exception for total assets (5.1) The amount in respect of a specified mark-to-market property to be included in the total assets of a partnership for a fiscal period for the purposes of applying subsection (4) to a corporation for a taxation year is determined without reference to any mark-to-market change with respect to the specified mark-to-market property if, (a) the taxation year of the corporation ends after March 22, 2007; or (b) the taxation year of the corporation begins after June 30, 2004 and ends before March 23, 2007 and the corporation made an election before February 26, 2008 to have section 1 of Ontario Regulation 509/07 (Corporate Minimum Tax) made under this Act apply to all of the corporation’s taxation years beginning after June 30, 2004 and ending before March 23, 2007.  2008, c. 7, Sched. E, s. 8 (5). Same (5.2) For the purposes of subsection (5.1), any mark-to-market changes with respect to property of a partnership are determined as if the partnership were a corporation and its fiscal period were a taxation year.  2008, c. 7, Sched. E, s. 8 (5). Deemed partner (6) For the purposes of this Part, a corporation which is a member, or is deemed by this subsection to be a member, of a partnership that is a member of another partnership shall be deemed to be a member of the other 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 2001, c. 23, s. 38
- 05/12/2001 2004, c. 16, s. 2 (2)
- 01/01/2004 2008, c. 7, Sched. E, s. 8 (1-5) - 30/06/2004