Income Tax Regulations (C.R.C., c. 945)

Regulations are current to 2017-09-27 and last amended on 2017-07-01. Previous Versions

Special Rules for Residual Portion of Gain or Loss

Marginal note:Application
  •  (1) This section applies for the purposes of subparagraphs 142.4(4)(c)(ii) and (d)(ii) of the Act.

  • Marginal note:Winding-up

    (2) If subsection 88(1) of the Act has applied to the winding-up of a taxpayer (in this subsection referred to as the “subsidiary”), the following rules apply in respect of the residual portion of a gain or loss of the subsidiary from the disposition of a specified debt obligation to which subsection 142.4(4) of the Act applies:

    • (a) the amount of that residual portion allocated to the taxation year of the subsidiary in which its assets were distributed to its parent on the winding-up shall be determined on the assumption that the taxation year ended when the assets were distributed to its parent;

    • (b) no amount shall be allocated in respect of that residual portion to any taxation year of the subsidiary after its taxation year in which its assets were distributed to its parent; and

    • (c) the amount of that residual portion allocated to the taxation year of the parent in which the subsidiary’s assets were distributed to it shall be determined on the assumption that the taxation year began when the assets were distributed to it.

  • (2.1) [Repealed, SOR/2009-302, s. 12]

  • Marginal note:Transfer of an insurance business

    (3) No amount in respect of the residual portion of a gain or loss of an insurer from the disposition of a specified debt obligation to which subsection 142.4(4) of the Act applies shall be allocated to any taxation year of the insurer that ends after the insurer ceased to carry on all or substantially all of an insurance business, if

    • (a) subsection 138(11.5) or (11.94) of the Act has applied to the transfer of that business; and

    • (b) the person to whom that business was transferred is considered, because of paragraph 138(11.5)(k) of the Act, to be the same person as the insurer in respect of that residual portion.

  • Marginal note:Transfer to new partnership

    (4) If subsection 98(6) of the Act deems a partnership (in this subsection referred to as the “new partnership”) to be a continuation of another partnership (in this subsection referred to as the “predecessor partnership”), the following rules apply in respect of the residual portion of a gain or loss of the predecessor partnership from the disposition of a specified debt obligation to which subsection 142.4(4) of the Act applies:

    • (a) the amount of that residual portion allocated to the taxation year of the predecessor partnership in which its property was transferred to the new partnership shall be determined on the assumption that the taxation year ended when the property was transferred;

    • (b) no amount shall be allocated in respect of that residual portion to any taxation year of the predecessor partnership after its taxation year in which its property was transferred to the new partnership; and

    • (c) the amount of that residual portion allocated to the taxation year of the new partnership in which the predecessor partnership’s property was transferred to it shall be determined on the assumption that the taxation year began when the property was transferred to it.

  • Marginal note:Ceasing to carry on business

    (5) There shall be allocated to a particular taxation year of a taxpayer the part, if any, of the residual portion of the taxpayer’s gain or loss that is from a disposition of a specified debt obligation to which subsection 142.4(4) of the Act applies and that was not allocated to a preceding taxation year, if

    • (a) at any time in the particular taxation year the taxpayer ceases to carry on all or substantially all of a business, otherwise than as a result of a merger to which subsection 87(2) of the Act applies, a winding-up to which subsection 88(1) of the Act applies or a transfer of the business to which subsection 98(6) or 138(11.5) or (11.94) of the Act applies;

    • (b) the disposition occurred before that time; and

    • (c) the specified debt obligation was property used in the business.

  • Marginal note:Non-resident taxpayer

    (5.1) For the purpose of subsection (5), a non-resident taxpayer is considered to cease to carry on all or substantially all of a business if the taxpayer ceases to carry on, or ceases to carry on in Canada, all or substantially all of the part of the business that was carried on in Canada.

  • Marginal note:Ceasing to be a financial institution

    (6) There shall be allocated to a particular taxation year of a taxpayer the part, if any, of the residual portion of the taxpayer’s gain or loss that is from a disposition of a specified debt obligation to which subsection 142.4(4) of the Act applies and that was not allocated to a preceding taxation year, if

    • (a) the particular taxation year ends immediately before the time at which the taxpayer ceases to be a financial institution, otherwise than because it has ceased to carry on a business; and

    • (b) the disposition occurred before that time.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/2009-222, s. 7;
  • SOR/2009-302, s. 12.

PART XCIIIFilm or Video Production Services Tax Credit

Accredited Production

  •  (1) Subject to subsection (2), for the purpose of section 125.5 of the Act, accredited production means

    • (a) a film or video production in respect of which the aggregate expenditures, included in the cost of the production, in the period that ends 24 months after the time that the principal filming or taping of the production began, exceeds $1,000,000; and

    • (b) a film or video production that is part of a series of television productions that has two or more episodes, or is a pilot programme for such a series of episodes, in respect of which the aggregate expenditures included in the cost of each episode in the period that ends 24 months after the time that the principal filming or taping of the production began exceeds

      • (i) in the case of an episode whose running time is less than 30 minutes, $100,000, and

      • (ii) in any other case, $200,000.

  • (2) An accredited production does not include a production that is any of the following:

    • (a) news, current events or public affairs programming, or a programme that includes weather or market reports;

    • (b) a talk show;

    • (c) a production in respect of a game, questionnaire or contest;

    • (d) a sports event or activity;

    • (e) a gala presentation or awards show;

    • (f) a production that solicits funds;

    • (g) reality television;

    • (h) pornography;

    • (i) advertising; and

    • (j) a production produced primarily for industrial, corporate or institutional purposes.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/2005-126, s. 5.

PART XCIV[Repealed, 2016, c. 7, s. 59]

 [Repealed, 2016, c. 7, s. 59]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. 2007, c. 35, s. 88;
  • 2014, c. 39, s. 89;
  • 2016, c. 7, s. 59.

 [Repealed, 2016, c. 7, s. 59]

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. 2011, c. 24, s. 99;
  • 2016, c. 7, s. 59.

PART XCVEmployee Life and Health Trusts

Marginal note:Prescribed rights

 For the purpose of subparagraph 144.1(2)(g)(iii) of the Act, prescribed payments are payments to General Motors of Canada Limited or Chrysler Canada Inc. by the employee life and health trust established for the benefit of retired automobile industry workers by the Canadian Auto Workers’ Union that

  • (a) are reasonable in the circumstances;

  • (b) are made as consideration for administrative services provided to or on behalf of the trust or its beneficiaries, or as reimbursement for employee benefit payments made on behalf of, or in contemplation of the establishment of, the trust; and

  • (c) the recipient acknowledges in writing shall be included in computing the recipient’s income in the year that they are receivable, to the extent that the recipient deducts in the year, or deducted in a prior year, in computing its income amounts in respect of the services or benefit payments described in paragraph (b).

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. 2010, c. 25, s. 87.

PART XCVISchool Supplies Tax Credit

Marginal note:Prescribed durable goods

 For the purpose of the definition teaching supplies in subsection 122.9(1) of the Act, the following are prescribed durable goods:

  • (a) books;

  • (b) games and puzzles;

  • (c) containers (such as plastic boxes or banker boxes); and

  • (d) educational support software.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. 2016, c. 7, s. 60.
 
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