14 (1) Except as hereinafter provided, the taxable capital gains and allowable capital losses of a corporation for a taxation year from the disposition of any property shall for the purposes of this Act be determined in accordance with subdivision c of Division B of Part I of the Income Tax Act (Canada) and the said subdivision c is applicable to this Act in so far as the said subdivision applies to corporations.  R.S.O. 1990, c. C.40, s. 14 (1); 2004, c. 16, s. 2 (2). Idem (2) In the application of paragraph 39 (1) (a) of the Income Tax Act (Canada) for the purposes of this Act, subparagraph 39 (1) (a) (ii.1) is not applicable.  R.S.O. 1990, c. C.40, s. 14 (2); 2004, c. 16, s. 2 (2). Idem (3) Subsections 39 (7) and (8) of the Income Tax Act (Canada) do not apply for the purposes of this Act.  R.S.O. 1990, c. C.40, s. 14 (3); 1996, c. 29, s. 40 (1); 2004, c. 16, s. 2 (2). Limit on capital gains reserve (3.1) Despite subparagraph 40 (1) (a) (iii) of the Income Tax Act (Canada), the amount a corporation may claim as a deduction under that subparagraph for the purposes of this Act in determining its gain for a taxation year from the disposition of a property shall not exceed the amount claimed for the taxation year for the purposes of the Income Tax Act (Canada) under that subparagraph in respect of the disposition.  1997, c. 43, Sched. A, s. 9 (1); 2004, c. 16, s. 2 (2). Exception (3.2) Subsection (3.1) does not apply in determining the amount of a corporation’s gain for a taxation year from the disposition of a property if section 5.2 or 5.3 applies in determining the amount deducted by the corporation under subparagraph 40 (1) (a) (iii) of the Income Tax Act (Canada), as it applies for the purposes of this Act, in determining the amount of the gain.  1998, c. 34, s. 32 (1); 1999, c. 9, s. 79 (1); 2004, c. 16, s. 2 (2). Same (3.3) Subsection (3.2) applies to taxation years ending after the day on which that subsection comes into force.  1998, c. 34, s. 32 (1); 2004, c. 16, s. 2 (2). Idem (4) In the application of subparagraph 40 (2) (a) (i) and paragraph 44 (7) (a) of the Income Tax Act (Canada) for the purposes of this Act, the said provisions shall be read as though the words “was not resident” were deleted and the words “ceased to have a permanent establishment” were inserted in lieu thereof.  R.S.O. 1990, c. C.40, s. 14 (4); 2004, c. 16, s. 2 (2). Adjustments to cost base (5) The following rules apply for the purposes of this Act in computing the adjusted cost base to a corporation of property as required under subsection (1): 1. If the property is a foreign resource property, the adjusted cost base of the property to the corporation, i. shall be increased by the amount, if any, of the foreign exploration and development expenses incurred by the corporation after 1971 with respect to the property that has not been allowed as a deduction from income for the purposes of this Act, and ii. shall be reduced by, A. any amount that has become receivable by the corporation at a particular time in a taxation year as the result of a transaction that occurred after May 6, 1974 in which the consideration given by the corporation for the amount was property or services the original cost of which may reasonably be regarded as having been foreign exploration and development expenses, and B. any amount required by subsection 80 (9) of the Income Tax Act (Canada) to be applied to reduce the adjusted cost base of the property at or before the end of the taxation year. 2. Clause 53 (2) (c) (ii) (B) of the Income Tax Act (Canada) applies, except that the clause shall be read without the words “and foreign resource pool expenses”. 3. Subparagraph 53 (2) (k) (i) of the Income Tax Act (Canada) applies, except that the reference in clause 53 (2) (k) (i) (B) of that Act to section 65 shall be read as a reference to both section 65 of that Act and section 17 of this Act. 4. If the property is an interest in a partnership, i. there shall be deducted in respect of each fiscal period of the partnership ending before that time all amounts deducted by the corporation for a taxation year commencing before that time, A. under section 12 in respect of the corporation’s share of the qualified expenditures made by the partnership in the fiscal period, B. under section 13 in respect of the portion of the property of the partnership deemed to be eligible assets acquired by the corporation, C. under section 13.1 in respect of an amount deducted under clause 11 (10) (a) by the partnership as an Ontario new technology tax incentive, D. under sections 13.2 and 13.3 in respect of the corporation’s share of the qualifying expenditures under each of those sections made by the partnership in the fiscal period, E. under section 13.4 in respect of the corporation’s share of the capital costs incurred by the partnership in the fiscal period, and F. under section 13.5 in respect of the corporation’s share of the amount described in subsection 13.5 (4), as determined under that subsection, and ii. there shall be added in respect of each fiscal period of the partnership ending before that time all amounts included in the income of the corporation for a taxation year commencing before that time under subsection 12 (13) or section 11.1.  2005, c. 28, Sched. D, s. 4 (1). Exception (5.1) Despite paragraph 4 of subsection (5), if the corporation’s partnership interest is in a limited partnership that had a non-capital loss for a fiscal period ending in a taxation year of the corporation, the following rules apply: 1. An amount described in subparagraph 4 i of subsection (5) shall be deducted from the adjusted cost base of the corporation’s interest in the limited partnership only to the extent that the amount may reasonably be considered not to have been included in the calculation of the amount of the corporation’s limited partnership loss for the taxation year. 2. An amount described in subparagraph 4 ii of subsection (5) shall be added to the adjusted cost base of the corporation’s interest in the limited partnership only to the extent that the amount may reasonably be considered not to have been included in the calculation of the amount of the corporation’s limited partnership loss for the taxation year.  2005, c. 28, Sched. D, s. 4 (1). Definitions (6) In this section, “foreign exploration and development expenses” incurred by a corporation means, (a) any drilling or exploration expense, including any general geological or geophysical expense, incurred by it on or in respect of exploring or drilling for petroleum or natural gas outside Canada, (b) any prospecting, exploration or development expense incurred by it in searching for minerals outside Canada, (c) any annual payment made by the corporation for the preservation of a foreign resource property, and (d) its share of the foreign exploration and development expenses incurred by any association, partnership or syndicate in a fiscal period thereof, if at the end of that fiscal period it was a member or partner thereof; (“frais d’exploration et d’aménagement à l’étranger”) “foreign resource property” of a corporation means any property that would be a Canadian resource property of the corporation within the meaning of subsection 66 (15) of the Income Tax Act
(Canada) if the definition of “Canadian resource property” were read as if the references therein to “in Canada” were references to “outside Canada”. (“avoir minier étranger”)  R.S.O. 1990, c. C.40, s. 14 (6); 1996, c. 29, s. 40 (3); 2004, c. 16, s. 2 (2). Interpretation (7) Subsections 127.2 (8) and 127.3 (6) of the Income Tax Act (Canada) apply in the determination of the cost of and capital gain from the disposition of capital property which includes shares, debt obligations and rights.  R.S.O. 1990, c. C.40, s. 14 (7); 2004, c. 16, s. 2 (2). Deemed government assistance (8) Despite subsection 1 (3.1), in the application of paragraph 53 (2) (k) of the Income Tax Act (Canada) for the purposes of this Act, all amounts deducted under subsection 127 (5) or (6) of that Act, or deemed to have been deducted under subsection 127 (5) by operation of subsection 127.1 (3) or 192 (10) of that Act in the application of paragraph 53 (2) (k) for the purposes of that Act, shall be deemed to be assistance received by the corporation before that time from a government.  R.S.O. 1990, c. C.40, s. 14 (8); 2004, c. 16, s. 2 (2); 2005, c. 28, Sched. D, s. 4 (2). Section Amendments with date in force (d/m/y) 1992, c. 3, s. 5 - 25/06/1992; 1996, c. 29, s. 40 (1) - 01/01/1993; 1996, c. 29, s. 40 (2) - 22/02/1994; 1996, c. 29, s. 40 (3) - 01/03/1994; 1997, c. 43, Sched. A, s. 9 (1, 2) - 25/11/1997; 1998, c. 5, s. 8 (1) - 26/06/1998; 1998, c. 5, s. 8 (2) - 01/09/1997; 1998, c. 34, s. 32 (1) - 18/12/1998; 1998, c. 34, s. 32 (2) - 06/05/1998; 1998, c. 34, s. 32 (3) - 01/07/1998; 1999, c. 9, s. 79 (1) - 14/12/1999; 1999, c. 9, s. 79 (2) - 05/05/1999 2000, c. 42, s. 13
- 03/05/2000 2004, c. 16, s. 2 (2)
- 01/01/2004; 2004, c. 31, Sched. 9, s. 8 - 16/12/2004 2005, c. 28, Sched. D, s. 4 (1) - 16/12/2004; 2005, c. 28, Sched. D, s. 4 (2) - 01/01/2003 Subdivision C — Other Sources of Income