58 (1) Except as provided in subsection (3), the amount of a corporation’s eligible losses for a taxation year that is deducted or deemed to be deducted under this Division for the year is equal to the lesser of “D” and “E” where,  “D” is the amount, if any, by which “F” exceeds “G” where, “F” is the sum of all amounts, each of which is, (a) the corporation’s adjusted net loss under Part II.1 of the Corporations Tax Act for a previous taxation year that, (i)  ended before March 23, 2007, and (ii)  is not earlier than the 10th taxation year before the taxation year, or (b) the corporation’s adjusted net loss under Part II.1 of the Corporations Tax Act or under this Division for a previous taxation year that, (i)  ends after March 22, 2007, and (ii)  is not earlier than the 20th taxation year before the taxation year, and “G” is the sum of all amounts, each of which is an amount included in the amount of “F” that was deducted or is deemed to have been deducted as an eligible loss under Part II.1 of the Corporations Tax Act or this Division for a previous taxation year, and “E” is the corporation’s adjusted net income for the taxation year.  2007, c. 11, Sched. A, s. 58 (1); 2010, c. 1, Sched. 29, s. 6. Same (2) For the purposes of this Division, the following rules apply in determining the amount of a corporation’s eligible losses for a taxation year: 1. The amount of a corporation’s eligible losses for a previous taxation year is deemed to have been deducted under Part II.1 of the
Corporations Tax Act or this Division for the previous taxation year whether or not the corporation was subject to tax imposed under Part II.1 of the Corporations Tax Act or this Division for the previous taxation year. 2. The corporation’s adjusted net loss for the taxation year that is otherwise included in the corporation’s eligible losses for that year shall be deducted or deemed to be deducted under Part II.1 of the Corporations Tax Act or this Division before any amount in respect of the adjusted net loss of the corporation for a subsequent taxation year.  2007, c. 11, Sched. A, s. 58 (2). Acquisition of control, eligible losses (3) If at any time control of a corporation is acquired by a person or group of persons, the amount of the corporation’s eligible losses for a taxation year ending after that time shall include only those amounts otherwise included that may reasonably be regarded as the corporation’s losses from carrying on a business before that time, (a) if that business was carried on by the corporation for profit or with a reasonable expectation of profit throughout that year; and (b) to the extent of the portion of the corporation’s adjusted net income for that year that is reasonably attributable to that business and, if properties were sold, leased, rented or developed or services rendered in the course of carrying on that business before that time, to any other business substantially all the income of which was derived from the sale, leasing, rental or development, as the case may be, of similar properties or the rendering of similar services.  2007, c. 11, Sched. A, s. 58 (3). Amalgamation (4) If there has been an amalgamation of corporations to which section 87 of the Federal Act applies, the amalgamated corporation is deemed to be the same corporation as and a continuation of each predecessor corporation for the purposes of determining the amount of, (a) the amalgamated corporation’s eligible losses for a taxation year ending after the amalgamation; and (b) the amalgamated corporation’s eligible losses for a taxation year that were deducted or deemed to have been deducted under Part II.1 of the Corporations Tax Act or this Division for a previous taxation year.  2007, c. 11, Sched. A, s. 58 (4). Exception (4.1) If an amalgamation of two or more predecessor corporations occurs after March 21, 2007, subsection (4) does not apply in determining for the purposes of the amalgamated corporation an amount in respect of one of the predecessor corporations if that predecessor corporation was controlled at any time before the amalgamation by any of the other predecessor corporations.  2008, c. 7, Sched. S, s. 16 (1). Winding-up (5) If the rules in subsection 88 (1) of the Federal Act
apply to the winding-up of a subsidiary corporation that was completed before March 22, 2007, the parent corporation is deemed to be the same corporation as and a continuation of the subsidiary corporation for the purposes of determining the amount of, (a) the parent corporation’s eligible losses for a taxation year after the winding-up; and (b) the parent corporation’s eligible losses for a taxation year that were deducted or deemed to have been deducted under Part II.1 of the Corporations Tax Act or this Division for a previous taxation year.  2007, c. 11, Sched. A, s. 58 (5); 2008, c. 7, Sched. S, s. 16 (2). Winding-up or dissolution of a Canadian affiliate of an entrant bank (6) If the events described in paragraphs 142.7 (12) (a) and (b) of the Federal Act have occurred with respect to the winding-up of a Canadian affiliate of an entrant bank (within the meaning of subsection 142.7 (1) of that Act) or in respect of the dissolution of a Canadian affiliate of an entrant bank under a dissolution order (within the meaning of subsection 142.7 (12) of that Act), the entrant bank is deemed to be the same corporation as, and a continuation of, the Canadian affiliate for the purposes of determining the amount of, (a) the entrant bank’s eligible losses for a taxation year after the winding-up or dissolution; and (b) the entrant bank’s eligible losses for a taxation year that were deducted or deemed to have been deducted under Part II.1 of the Corporations Tax Act or this Division for a previous taxation year.  2007, c. 11, Sched. A, s. 58 (6). Exception (7) Subsection (6) does not apply unless, (a) before the later of June 14, 2005 and the date determined under paragraph 142.7 (11) (b) of the Federal Act, (i) the entrant bank and the Canadian affiliate jointly elected that subsection 57.5 (10) of the Corporations Tax Act or subsection (6) applied, if the Canadian affiliate had not been wound up or dissolved before the election was made, or (ii) the entrant bank elected that subsection 57.5 (10) of the Corporations Tax Act or subsection (6) applied, if the Canadian affiliate had been wound up or dissolved and ceased to exist before the election was made; or (b) the entrant bank and the Canadian affiliate jointly elected under paragraph 142.7 (12) (c) of the Federal Act to have section 142.7 of that Act apply.  2007, c. 11, Sched. A, s. 58 (7). Application of subs. (6) (8) Subsection (6) applies only to, (a) losses for taxation years for which an election by the Canadian affiliate and entrant bank under paragraph 142.7 (12) (c) of the Federal Act applies or to which section 142.7 of the Federal Act would have applied if an election had been made under paragraph 142.7 (12) (c) of that Act; and (b) losses for previous taxation years in which a loss for the purposes of this section or section 57.5 of the Corporations Tax Act was incurred.  2007, c. 11, Sched. A, s. 58 (8). Section Amendments with date in force (d/m/y) 2008, c. 7, Sched. S, s. 16 (1, 2) - 01/01/2008 2010, c. 1, Sched. 29, s. 6 - 01/01/2009