13 (1) In this section, “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”) “eligible asset”, of a corporation, means prescribed manufacturing and processing machinery or equipment acquired by the corporation after the 31st day of December, 1988 and before the 1st day of January, 1992, or prescribed pollution control equipment acquired by the corporation after the 17th day of May, 1989, that, (a) has not been used by any person for any purpose before being acquired by the corporation, (b) is first used by the corporation in Ontario, (c) is used by the corporation for the purpose of earning income from a business, and (d) has not been deemed to have been acquired by the corporation by paragraph 16.1 (1) (b) of the Income Tax Act (Canada), as made applicable by subsection 11 (1) of this Act; (“élément d’actif admissible”) “eligible asset pool”, of a corporation for a taxation year, means the amount, if any, by which the aggregate of, (a) the eligible cost to the corporation at the end of the taxation year of the eligible assets of the corporation for the taxation year or a prior taxation year, (b) the eligible cost to the corporation immediately before disposition of the eligible assets of the corporation for the taxation year or a prior taxation year that were acquired and disposed of by the corporation at any time before the end of the taxation year, and (c) all amounts each of which is an amount in respect of an eligible asset included under element C in the formula in the definition of “undepreciated capital cost” in subsection 13 (21) of the Income Tax Act (Canada) in the determination of the undepreciated capital cost to the corporation at the end of the taxation year of depreciable property of a prescribed class, exceeds, (d) the aggregate of, (i) all amounts each of which is an amount in respect of an eligible asset included under element I or J in the formula in the definition of “undepreciated capital cost” in subsection 13 (21) of the Income Tax Act (Canada) in determining the undepreciated capital cost to the corporation at the end of the taxation year of depreciable property of a prescribed class, (ii) all amounts each of which is an amount included in the income of the corporation, or of a subsidiary corporation or a predecessor corporation, for the taxation year, or for a prior taxation year, under paragraph 12 (1) (t) of the Income Tax Act
(Canada), as made applicable for the purposes of this Act, in respect of an eligible asset, and (iii) all amounts each of which is the amount of the eligible asset pool of the corporation for a prior taxation year in respect of which the corporation was entitled under this section to deduct an amount in computing its income; (“ensemble d’éléments d’actif admissibles”) “eligible assets of the corporation for the taxation year” means the eligible assets that were acquired by the corporation in the taxation year or a prior taxation year and in respect of which, (a) the taxation year is the first taxation year in which the corporation may include an amount under element A in the formula in the definition of “undepreciated capital cost” in subsection 13 (21) of the Income Tax Act (Canada) in respect of those assets in the determination of the undepreciated capital cost of depreciable property of a prescribed class, and (b) no amount has been included under element A in the formula in the definition of “undepreciated capital cost” in subsection 13 (21) of the Income Tax Act (Canada) by a subsidiary corporation or predecessor corporation in the determination of the undepreciated capital cost of depreciable property of a prescribed class of the corporation for a taxation year; (“éléments d’actif admissibles de la société pour l’année d’imposition”) “eligible cost”, to a corporation at a particular date of eligible assets of the corporation for a taxation year, means, (a) in respect of eligible assets that are prescribed manufacturing and processing machinery or equipment, the capital cost to the corporation of the assets at that date, and (b) in respect of eligible assets that are prescribed pollution control equipment acquired in a particular taxation year by the corporation, or by a subsidiary corporation or predecessor corporation, the lesser of, (i) the capital cost to the corporation of the assets at that date, or (ii) the amount by which, (A) $20,000,000 multiplied by the ratio of the number of days in the particular taxation year to 365, or, if the particular taxation year commenced before the 18th day of May, 1989, by the ratio of the number of days in that taxation year after the 17th day of May, 1989, to 365, exceeds, (B) the capital cost to the corporation of the eligible assets acquired in the particular year that have been included in the eligible asset pool of the corporation for a prior taxation year; (“coût admissible”) “Ontario allocation factor”, of a corporation for a taxation year, has the same meaning as in subsection 12 (1); (“coefficient de répartition de l’Ontario”) “parent corporation” means a corporation that is a “parent” under subsection 88 (1) of the Income Tax Act
(Canada); (“société mère”) “predecessor corporation” means a corporation that was a predecessor corporation referred to in section 87 of the Income Tax Act (Canada) and includes a corporation in respect of which a predecessor corporation was an amalgamated corporation; (“société remplacée”) “specified rate”, of a corporation for a taxation year, means the rate calculated according to the following formula: A = 0.1 × (B/E) + 0.15 × (C/E) + 0.3 × (D/E) where: “A” is the specified rate of the corporation for the taxation year, “B” is the eligible cost to the corporation of all eligible assets of the corporation for the taxation year acquired by the corporation before the 1st day of January, 1990, “C” is the eligible cost to the corporation of all eligible assets of the corporation for the taxation year acquired by the corporation after the 31st day of December, 1989 and before the 1st day of January, 1991, “D” is the eligible cost to the corporation of all eligible assets of the corporation for the taxation year acquired by the corporation after the 31st day of December, 1990, “E” is the aggregate of “B”, “C” and “D”; (“taux déterminé”) “subsidiary corporation” means a corporation that is a “subsidiary” under subsection 88 (1) of the Income Tax Act (Canada). (“filiale”)  R.S.O. 1990, c. C.40, s. 13 (1); 1992, c. 3, s. 4 (1); 1996, c. 29, s. 39 (1); 2004, c. 16, s. 2 (2). Current cost adjustment deduction (2) A corporation may deduct in computing its income from a business for a taxation year a current cost adjustment deduction calculated according to the following formula: A = (B/C) × D where: “A” is the current cost adjustment deduction for the taxation year; “B” is the corporation’s eligible asset pool for the taxation year; “C” is the corporation’s Ontario allocation factor for the taxation year unless the Ontario allocation factor is 0, in which case “C” is 1; and “D” is the corporation’s specified rate for the taxation year. R.S.O. 1990, c. C.40, s. 13 (2); 2004, c. 16, s. 2 (2). Date of acquisition (3) If the Minister believes, reasonably, that the corporation has delayed the acquisition of an asset primarily for the purposes of either claiming a deduction under this section or claiming a deduction at a higher specified rate, the Minister may, for the purposes of determining a deduction under this section, deem the acquisition to have occurred on another date.  R.S.O. 1990, c. C.40, s. 13 (3); 2004, c. 16, s. 2 (2). Corporate partners (4) If a corporation is a member of a partnership that has acquired property in a particular fiscal period that would be an eligible asset under this section if acquired by a corporation on the date of acquisition by the partnership, the following rules apply for the purposes of this section: 1. The property shall be deemed to have been acquired jointly by the partners, not by the partnership, on the date the property was acquired by the partnership. 2. The capital cost to the corporation of its interest in the property for the purposes of this section is that proportion of the capital cost of the property to the partnership at the end of the fiscal period of the partnership during which the property was acquired that the corporation’s share of the income or loss of the partnership for the fiscal period bears to the total income or loss of the partnership for the fiscal period. 3. The property shall be deemed to be an eligible asset of the corporation for the taxation year in which the fiscal period of the partnership ends in which the partnership may first include an amount under subparagraph 13 (21) (f) (i) of the Income Tax Act (Canada) in respect of the property in the determination of the undepreciated capital cost of depreciable property of a prescribed class. 4. The amount of the corporation’s eligible asset pool for a taxation year is increased by an amount equal to the proportion of any repaid assistance, included under subparagraph 13 (21) (f) (ii.1) of the Income Tax Act (Canada) in determining the undepreciated capital cost to the partnership of depreciable property of a prescribed class at the end of the fiscal period of the partnership ending in the taxation year, that is the corporation’s share of the income or loss of the partnership for the fiscal period and reduced by the same proportion of any amount included by the partnership under subparagraph 13 (21) (f) (viii) of that Act for the fiscal period in determining the undepreciated capital cost of the partnership’s depreciable property of a prescribed class.  R.S.O. 1990, c. C.40, s. 13 (4); 2004, c. 16, s. 2 (2). Amalgamations and winding-up (5) If a corporation claiming a deduction under this section is an amalgamated corporation or a parent corporation, the following rules apply for the purposes of this section: 1. Each eligible asset acquired on a particular date by a subsidiary corporation or a predecessor corporation shall be deemed to have been acquired by the corporation on the same date. 2. The capital cost of the asset to the corporation shall be deemed to be the capital cost thereof to the predecessor corporation or the subsidiary corporation. 3. An eligible asset pool of a subsidiary corporation or a predecessor corporation for a prior taxation year shall be deemed to be an eligible asset pool of the corporation for a prior taxation year.  R.S.O. 1990, c. C.40, s. 13 (5); 2004, c. 16, s. 2 (2). Anti-avoidance (6) A corporation is not entitled to a deduction under this section with respect to an asset if the acquisition or use of the asset was part of or related to a series of transactions or events and it is reasonable for the Minister to believe that one of the principal purposes for the acquisition of the asset was for use by another person or for use outside Ontario.  R.S.O. 1990, c. C.40, s. 13 (6); 2004, c. 16, s. 2 (2). Limitation (7) In the application of element A in the formula in the definition of “undepreciated capital cost” in subsection 13 (21) of the Income Tax Act (Canada) for the purposes of this section, no amount shall be included in calculating the undepreciated capital cost to the corporation of depreciable property of a prescribed class before the date the property is considered to have become available for use by the corporation.  1992, c. 3, s. 4 (2); 1996, c. 29, s. 39 (2); 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 1992, c. 3, s. 4 (1, 2) - 25/06/1992; 1996, c. 29, s. 39 (1, 2) - 01/03/1994 2004, c. 16, s. 2 (2)
- 01/01/2004