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

Regulations are current to 2014-10-15 and last amended on 2014-06-19. Previous Versions

Prescribed Deductions

 For the purposes of subparagraph 66.1(2)(a)(ii) of the Act, “prescribed deduction” in respect of a corporation for a taxation year means an amount deducted under subsection 1202(2) by the corporation in computing its income for the year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/81-974, s. 12;
  • SOR/91-79, s. 11;
  • SOR/94-686, s. 79(F).

Amalgamations and Windings-Up

[SOR/91-79, s. 12]
  •  (1) Where a particular corporation amalgamates with another corporation to form a new corporation, or the assets of a subsidiary are transferred to its parent corporation on the winding-up of the subsidiary, and subsection 87(1.2) or 88(1.5) of the Act is applicable to the new corporation or the parent corporation, as the case may be, the new corporation or the parent corporation, as the case may be, shall be deemed to be the same corporation as, and a continuation of, the particular corporation or the subsidiary, as the case may be, for the purposes of

    • (a) computing the mining exploration depletion base (within the meaning assigned by subsection 1203(2)), the earned depletion base, the frontier exploration base (within the meaning assigned by subsection 1207(2)) and the supplementary depletion base (within the meaning assigned by subsection 1212(3)) of the new corporation or the parent corporation, as the case may be; and

    • (b) determining the amounts, if any, that may be deducted under subsection 1202(2) in computing the income of the new corporation or the parent corporation, as the case may be, for a particular taxation year.

  • (2) Where there has been an amalgamation (within the meaning assigned by subsection 87(1) of the Act) of two or more particular corporations to form one corporate entity, that entity shall be deemed to be the same corporation as, and a continuation of, each of the particular corporations for the purposes of subsection 1202(9).

  • (3) Where a taxable Canadian corporation (in this subsection referred to as the “subsidiary”) has been wound up in circumstances in which subsection 88(1) of the Act applies in respect of the subsidiary and another taxable Canadian corporation (in this subsection referred to as the “parent”), the parent shall be deemed to be the same corporation as, and a continuation of, the subsidiary for the purposes of subsection 1202(9).

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/81-974, s. 12;
  • SOR/85-174, s. 12;
  • SOR/90-113, s. 9;
  • SOR/91-79, s. 12;
  • SOR/94-686, s. 79(F).

 [Repealed, SOR/90-733, s. 7]

Prescribed Persons

 For the purpose of subsection 208(1) of the Act, a person described in any of paragraphs 149(1)(d) to (d.6) of the Act is a prescribed person.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/85-174, s. 14;
  • SOR/2001-187, s. 2;
  • SOR/2001-295, s. 3(E).

Prescribed Canadian Exploration Expense

  •  (1) For the purposes of subsection 66(14.1) of the Act, the prescribed Canadian exploration expense of a corporation for a taxation year is the amount, if any, by which its total specified exploration expenses for the year exceed its total exploration assistance for the year.

  • (2) For the purposes of subsection (1), the total specified exploration expenses of a particular corporation for a particular taxation year are the aggregate of

    • (a) all expenses (other than expenses referred to in paragraph (b) or (c)) that are described in any of subparagraphs 66.1(6)(a)(i) to (ii) of the Act and that were incurred by the particular corporation in the particular year and after March 1985 and before October 1986,

    • (b) where the particular corporation is a shareholder corporation of a joint exploration corporation, all expenses described in any of subparagraphs 66.1(6)(a)(i) to (ii) of the Act that were incurred by the joint exploration corporation after March 1985 and before October 1986 and in the taxation year of the joint exploration corporation ending in the particular year and that were deemed under paragraph 66(10.1)(c) of the Act to be Canadian exploration expenses incurred by the particular corporation in the particular year, and

    • (c) all expenses that would be described in subparagraph 66.1(6)(a)(iv) or (v) of the Act if the references in those subparagraphs to “any of subparagraphs (i) to (iii.1) incurred” were read as “any of subparagraphs (i) to (ii) incurred after March 1985 and before October 1986” and that were incurred by the particular corporation in the particular year or by a partnership in a fiscal period of the partnership that ended in the particular year if, at the end of that fiscal period, the particular corporation was a member of the partnership,

    other than

    • (d) expenses renounced by the corporation at any time under subsection 66(10.1) or (12.6) of the Act,

    • (e) Canadian exploration and development overhead expenses of the corporation or of a partnership of which the corporation was a member, or

    • (f) expenses incurred or deemed to have been incurred by the corporation in a period during which it was exempt from tax on its taxable income under Part I of the Act.

  • (3) For the purposes of subsection (1), the total exploration assistance of a corporation for a taxation year is the aggregate of all amounts each of which is an amount of assistance or benefit that the corporation has received or is entitled to receive in the year from a government, municipality or other public authority in respect of an expense that is included in its total specified exploration expenses for the year by virtue of paragraph (2)(a) or (c), whether such amount is by way of a grant, subsidy, rebate, forgivable loan, deduction from royalty or tax, rebate of royalty or tax, investment allowance or any other form of assistance or benefit.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/88-423, s. 2;
  • SOR/94-686, ss. 58(F), 78(F), 79(F), 81(F).