31 (1) Except as hereinafter provided, the rules provided in subdivision j of Division B of Part I of the Income Tax Act (Canada) with respect to partnerships and their members are applicable for the purposes of this Act in so far as the said rules apply to corporations.  R.S.O. 1990, c. C.40, s. 31 (1); 2004, c. 16, s. 2 (2). No deduction of reserve (1.1) Paragraph 20 (1) (n) of the Income Tax Act (Canada) does not apply in determining for the purposes of this Act a partnership’s income for a fiscal period from a business in respect of a property sold in the course of the business if any property taken as security on the sale of the property has been sold, pledged, assigned or otherwise disposed of.  1998, c. 34, s. 34 (1); 2004, c. 16, s. 2 (2). Application of s. 11.0.1 (1.2) If a corporation holds a direct interest in and is a majority interest partner of a partnership at the end of a fiscal period of the partnership ending after December 31, 2002, the corporation’s share of the income or loss of the partnership for the fiscal period in respect of that interest shall be the amount that would be determined if, (a) section 11.0.1 applied to the partnership for the fiscal period on the basis that the partnership was a corporation and the fiscal period was its taxation year; and (b) section 11.0.1 applied to any other partnership in which the corporation had an indirect interest through the partnership and of which the corporation is a majority interest partner at any time in the fiscal period on the basis that the partnership was a corporation and its fiscal period was its taxation year.  2005, c. 28, Sched. D, s. 7 (1). Exception (2) Subsection 96 (1.6) of the Income Tax Act (Canada) is not applicable for the purposes of this Act.  R.S.O. 1990, c. C.40, s. 31 (2); 2004, c. 16, s. 2 (2). (3) Repealed:  2005, c. 28, Sched. D, s. 7 (2). (3.1) Repealed:  2005, c. 28, Sched. D, s. 7 (2). Members of partnerships deemed to have permanent establishment in Ontario (4) Where any activity in Ontario of a partnership in a taxation year is such that, if it were a corporation, it would be subject to subsection 2 (2), each corporation that is deemed to be a member of the partnership shall be deemed to be subject to subsection 2 (2) for that taxation year.  R.S.O. 1990, c. C.40, s. 31 (4); 2004, c. 16, s. 2 (2). Definition (5) In the application of the said subdivision j for the purposes of this Act, the reference in subsection 96 (5.1) to “Minister” shall be deemed to be a reference to the Minister of National Revenue for Canada.  R.S.O. 1990, c. C.40, s. 31 (5); 2004, c. 16, s. 2 (2). Application of Income Tax Act (Canada), cl. 96 (2.1) (b) (iv) (A) (6) For the purposes of this Act, the amount referred to in clause 96 (2.1) (b) (iv) (A) of the Income Tax Act (Canada) shall equal the corporation’s share of the foreign exploration and development expenses incurred by the partnership in the fiscal period that are deductible in computing income for the purposes of this Act.  R.S.O. 1990, c. C.40, s. 31 (6); 2004, c. 16, s. 2 (2). Limited partnership losses (7) In the application of subsection 96 (2.1) of the Income Tax Act (Canada) for the purposes of this Act, in determining the amount otherwise determined under paragraph 96 (2.1) (a) of that Act, (a) there shall be added all amounts deducted by the corporation for the taxation year, (i) under section 12 in respect of the corporation’s share of the qualified expenditures made by the partnership in the fiscal period, and (ii) under section 13 in respect of the portion of the property of the partnership deemed to be eligible assets acquired by the corporation; and (b) there shall be deducted all amounts included in the income of the corporation for the taxation year under subsection 12 (13) in respect of dispositions made by the partnership.  R.S.O. 1990, c. C.40, s. 31 (7); 1992, c. 3, s. 7; 2004, c. 16, s. 2 (2). Time of election (8) In applying subsection 96 (4) of the Income Tax Act (Canada), the reference to “the earliest of the days” shall be read as “the latest of the days” in the situation where subsection 31.1 (4) or (5) applies to the corporations and members of the partnership making the election under section 97 of that Act.  1997, c. 43, Sched. A, s. 12; 2001, c. 23, s. 27; 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 1992, c. 3, s. 7 - 25/06/1992; 1997, c. 43, Sched. A, s. 12 - 06/05/1997; 1998, c. 34, s. 34 (1, 2) - 18/12/1998 2001, c. 23, s. 27 - 05/12/2001 2004, c. 16, s. 2 (2)
- 01/01/2004; 2004, c. 31, Sched. 9, s. 13 - 16/12/2004 2005, c. 28, Sched. D, s. 7 (1) - 01/01/2003; 2005, c. 28, Sched. D, s. 7 (2) - 16/12/2004 Tax elections