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

Regulations are current to 2014-12-22 and last amended on 2014-12-16. Previous Versions

 [Repealed, SOR/99-91, s. 3]

 For the purposes of paragraph 8000(a),

  • (a) the principal amount outstanding at any time of a lending asset of a taxpayer that is a share of the capital stock of a corporation is the part of the consideration received by the corporation for the issue of the share that is outstanding at that time;

  • (b) where

    • (i) a taxpayer realizes a loss from the disposition of a loan or lending asset described in subparagraph 8000(a)(ii) or a specified loan described in paragraph 8000(a.1) (in this paragraph referred to as the “former loan”) for consideration that included another loan or lending asset that was a loan or lending asset described in subparagraph 8000(a)(ii) or paragraph 8000(a.1) (in this paragraph referred to as the “new loan”), and

    • (ii) in the case of a former loan that is not a specified loan, the loss is included in computing the taxpayer’s provisionable assets as reported for the year to the relevant authority, in accordance with the guidelines established by the relevant authority, for the purpose of determining the taxpayer’s general provisions or specific provisions in respect of exposures to designated countries,

    the principal amount of the new loan outstanding at the time it was acquired by the taxpayer is deemed to be equal to the principal amount of the former loan outstanding immediately before that time; and

  • (c) where at the end of a particular taxation year a taxpayer owns a specified loan that, at the end of the preceding taxation year, was described in an inventory of the taxpayer, the amortized cost of the specified loan to the taxpayer at the end of the particular year is its value determined under section 10 of the Act at the end of the preceding year for the purpose of computing the taxpayer’s income for the preceding year.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/91-78, s. 4;
  • SOR/94-686, s. 79(F);
  • SOR/99-91, s. 4.

 Where a taxpayer elects to have this section apply by notifying the Minister in writing within 90 days after the day on which this section is published in the Canada Gazette, the loans or lending assets of the taxpayer that are described in subparagraph 8000(a)(ii) shall not include any loan or lending asset acquired by the taxpayer before November 1988 from a person with whom the taxpayer was dealing at arm’s length.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/91-78, s. 4.

 [Repealed, SOR/99-91, s. 5]

 For the purposes of subparagraph 8000(a)(ii), where a loan or lending asset of a person (in this section referred to as the “holder”) related to a taxpayer

  • (a) was reported for the year by the taxpayer to the relevant authority, in accordance with the guidelines established by the relevant authority, as an exposure to a designated country,

  • (b) was acquired by the holder or another person related to the taxpayer after August 16, 1990 as part of a series of transactions or events in which the taxpayer or a person related to the taxpayer disposed of a loan or lending asset that

    • (i) for the taxation year immediately preceding the particular year in which it was disposed of, was a loan or lending asset that was reported by the taxpayer to the relevant authority, in accordance with the guidelines established by the relevant authority, as an exposure to a designated country, and

    • (ii) was a loan or lending asset a loss arising on the disposition of which would be a loss in respect of which a deduction is permitted under Part I of the Act to the taxpayer or a person related to the taxpayer, and

  • (c) had an amortized cost to the holder, immediately after the time it was acquired by the holder, that was less than 55 per cent of its principal amount,

the following rules apply:

  • (d) the loan or lending asset shall be deemed

    • (i) to be a loan or lending asset of the taxpayer at the end of the year,

    • (ii) to be a loan or lending asset of the taxpayer that was acquired by the taxpayer at the time it was acquired by the holder, and

    • (iii) to have an amortized cost to the taxpayer, at any time, that is equal to its amortized cost to the holder at that time, and

  • (e) any amount in respect of the loan or lending asset deducted under paragraph 20(1)(p) of the Act or included under paragraph 12(1)(i) of the Act in computing the holder’s income for a particular year shall be deemed to have been so deducted or included, as the case may be, in computing the income of the taxpayer for the year in which the particular year ends.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/91-78, s. 4.