Adjusted net income, mark-to-market property
 1. (1) In this Part, “excluded mark-to-market property” means, in respect of a corporation, property held by the corporation, (a) in respect of which mark-to-market changes 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 year under Part II of the Act if the property were held by the corporation throughout the taxation year, or (b) that is denominated in a foreign currency and in respect of which any change 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 year under Part II of the Act if the property were held by the corporation throughout the taxation year; “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; “specified mark-to-market property” means, in respect of a corporation, property, other than excluded mark-to-market property, held by the corporation, (a) in respect of which, under generally accepted accounting principles, any mark-to-market changes 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 Part II.1 of the Act if the property were held by the corporation throughout the taxation year, or (b) that is denominated in a foreign currency and in respect of which, under generally accepted accounting principles, any change 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 Part II.1 of the Act if the property were held by the corporation throughout the taxation year.  O. Reg. 509/07, s. 1 (1); O. Reg. 38/09, s. 3 (1, 2). (2) Subject to subsection (3), this section applies to corporations only in respect of taxation years beginning after June 30, 2004.  O. Reg. 509/07, s. 1 (2). (3) This section only applies to a corporation in respect of a taxation year beginning after June 30, 2004 and ending before March 23, 2007 if the corporation makes an election in the form approved by the Minister before February 26, 2008 to have this section apply to it for all of its taxation years beginning after June 30, 2004 and ending before March 23, 2007.  O. Reg. 509/07, s. 1 (3); O. Reg. 38/09, s. 3 (3). (4) The following amounts are prescribed for the purposes of subsection 57.4 (1) of the Act as amounts required to be included in determining a corporation’s adjusted net income for the purposes of Part II.1 of the Act for a taxation year: 1. The corporation’s accounting loss difference for the year. 2. The corporation’s net capital gain difference for the year. 3. The corporation’s net specified income for the year.  O. Reg. 509/07, s. 1 (4); O. Reg. 38/09, s. 3 (4). (5) The following amounts are prescribed for the purposes of subsection 57.4 (1) of the Act as amounts required to be included in calculating the total amount to be deducted in determining a corporation’s adjusted net income for the purposes of Part II.1 of the Act for a taxation year: 1. The corporation’s accounting gain difference for the year. 2. The corporation’s net capital loss difference for the year. 3. The corporation’s net specified loss for the year.  O. Reg. 509/07, s. 1 (5); O. Reg. 38/09, s. 3 (5). (5.1) For the purposes of determining the adjusted net income or adjusted net loss of a corporation for a taxation year during which the corporation is a partner in a partnership, this section applies in determining the adjusted net income or adjusted net loss of the partnership for fiscal periods ending in the taxation year of the corporation only 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 in accordance with subsection (3) to have this section apply to all of the corporation’s taxation years beginning after June 30, 2004.  O. Reg. 38/09, s. 3 (6). (6) A corporation’s accounting gain difference for a taxation year is the amount, if any, by which “A” exceeds “B” where, “A” is the sum of, (a) the corporation’s net income, if any, for the year for the purposes of Part II.1 of the Act, and (b) the amount, if any, that would be the corporation’s net loss for the year for the purposes of Part II.1 of the Act if the mark-to-market changes in each specified mark-to-market property held by the corporation in the year were not taken into account, and “B” is the sum of, (a) the amount, if any, that would be the corporation’s net income for the year for the purposes of Part II.1 of the Act if the mark-to-market changes in each specified mark-to-market property held by the corporation in the year were not taken into account, and (b) the corporation’s net loss, if any, for the year for the purposes of Part II.1 of the Act.  O. Reg. 509/07, s. 1 (6). (7) A corporation’s accounting loss difference for a taxation year is the amount, if any, by which the amount determined as “B” in subsection (6) for the year exceeds the amount determined as “A” in that subsection for the year.  O. Reg. 509/07, s. 1 (7). (8) A corporation’s net capital gain difference for a taxation year is the amount, if any, by which “C” exceeds “D” where, “C” is the sum of all amounts each of which is the corporation’s capital gain, if any, for the year from the disposition by the corporation of a specified mark-to-market property as determined for the purposes of Subdivision B of Division B of Part II of the Act, in the year or in a preceding taxation year, (a) ending after March 22, 2007, or (b) beginning after June 30, 2004 and ending before March 23, 2007 if an election has been filed pursuant to subsection (3), and “D” is the sum of all amounts each of which is the corporation’s capital loss or business investment loss, if any, for the year from the disposition of a specified mark-to-market property, as determined for the purposes of Subdivision B of Division B of Part II of the Act.  O. Reg. 509/07, s. 1 (8). (9) A corporation’s net capital loss difference for a taxation year is the amount, if any, by which the amount determined as “D” in subsection (8) for the year exceeds the amount determined as “C” in that subsection for the year.  O. Reg. 509/07, s. 1 (9). (10) A corporation’s net specified income for a taxation year is the amount, if any, by which “E” exceeds “F” where, “E” is the sum of, (a) the corporation’s income for the year, if any, as determined for the purposes of Part II of the Act, and (b) the amount, if any, that would be the corporation’s total loss for the year from business and property for the purposes of Part II of the Act if any increase or decrease in the amount of the loss attributable to the disposition of a specified mark-to-market property that was not a capital property were not included, and “F” is the sum of, (a) the amount, if any, that would be the corporation’s income for the year for the purposes of Part II of the Act if any increase or decrease in the amount of the income attributable to the disposition of a specified mark-to-market property that was a not a capital property were not included, and (b) the amount, if any, of the corporation’s total loss for the year from business and property for the purposes of Part II of the Act.  O. Reg. 509/07, s. 1 (10). (11) A corporation’s net specified loss for a taxation year is the amount, if any, by which the amount determined as “F” in subsection (10) for the year exceeds the amount determined as “E” in that subsection for the year.  O. Reg. 509/07, s. 1 (11). (12) Revoked:  O. Reg. 38/09, s. 3 (7).