“Canadian renewable and conservation expense”

« frais liés aux énergies renouvelables et à l’économie d’énergie au Canada »

“Canadian renewable and conservation expense” has the meaning assigned by regulation, and for the purpose of determining whether an outlay or expense in respect of a prescribed energy conservation property is a Canadian renewable and conservation expense, the Technical Guide to Canadian Renewable and Conservation Expenses (CRCE), as amended from time to time and published by the Department of Natural Resources, shall apply conclusively with respect to engineering and scientific matters;

• (g) any expense incurred by the taxpayer after November 16, 1978 and before March 21, 2013 for the purpose of bringing a new mine in a mineral resource in Canada, other than a bituminous sands deposit or an oil shale deposit, into production in reasonable commercial quantities and incurred before the new mine comes into production in such quantities, including an expense for clearing, removing overburden, stripping, sinking a mine shaft or constructing an adit or other underground entry, but not including any expense that results in revenue or can reasonably be expected to result in revenue earned before the new mine comes into production in reasonable commercial quantities, except to the extent that the total of all such expenses exceeds the total of those revenues,

• (g.3) any expense incurred by the taxpayer that would be described in paragraph (g) if the reference to “March 21, 2013” in that paragraph were “2017” and that is incurred

  • (i) under an agreement in writing entered into by the taxpayer before March 21, 2013, or

  • (ii) as part of the development of a new mine, if

    • (A) the construction of the new mine was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose construction does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), or

    • (B) the engineering and design work for the construction of the new mine, as evidenced in writing, was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose engineering and design work does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities),

• (g.4) any expense incurred by the taxpayer, the amount of which is determined by the formula

  A × B

  where

  A

  is an expense that would be described in paragraph (g) if the reference to “March 21, 2013” in that paragraph were “2018” and that is not described in paragraph (g.3), and

  B

  is

  • (i) 100% if the expense is incurred before 2015,

  • (ii) 80% if the expense is incurred in 2015,

  • (iii) 60% if the expense is incurred in 2016, and

  • (iv) 30% if the expense is incurred in 2017,

• (h) subject to section 66.8, the taxpayer’s share of any expense referred to in any of paragraphs (a) to (d) and (f) to (g.4) incurred by a partnership in a fiscal period of the partnership, if at the end of the period the taxpayer is a member of the partnership, or

A

is an expense that would be a Canadian exploration expense of the taxpayer described in paragraph (g) of the definition “Canadian exploration expense” if that paragraph were read without reference to “and before March 21, 2013” and “other than a bituminous sands deposit or an oil shale deposit”, but does not include an expense that is a specified oil sands mine development expense, and

• (a) would be a Canadian exploration expense described in paragraph (g) of the definition “Canadian exploration expense” if that paragraph were read without reference to “and before March 21, 2013” and “other than a bituminous sands deposit or an oil shale deposit”,

• (c.2) any expense, or portion of any expense, that is not a Canadian exploration expense, incurred by the taxpayer after March 20, 2013 for the purpose of bringing a new mine in a mineral resource in Canada, other than a bituminous sands deposit or an oil shale deposit, into production in reasonable commercial quantities and incurred before the new mine comes into production in such quantities, including an expense for clearing, removing overburden, stripping, sinking a mine shaft or constructing an adit or other underground entry,

• (iii) is paid or payable in respect of the taxpayer’s duties performed at a work site in Canada that is

  • (A) outside any population centre, as defined by the last Census Dictionary published by Statistics Canada before the year, that has a population of at least 40,000 individuals as determined in the last census published by Statistics Canada before the year, and

  • (B) at least 30 kilometres from the nearest point on the boundary of the nearest such population centre;

• Marginal note:Fair market value

  (5.31) For the purposes of subsections (5) and 104(4), the fair market value at any time of any property deemed to have been disposed of at that time as a consequence of a particular individual’s death is to be determined as though the fair market value at that time of any annuity contract were the total of all amounts each of which is the amount of a premium paid on or before that time under the contract if

  • (a) the contract is, in respect of an LIA policy, a contract referred to in subparagraph (b)(ii) of the definition “LIA policy” in subsection 248(1); and

  • (b) the particular individual is the individual, in respect of the LIA policy, referred to in that subparagraph.

• Marginal note:Trusts

  (2) If a trust, that is resident in Canada and that was created in any manner whatever since 1934, holds property on condition

• (c) by a qualifying environmental trust; or

“relevant loss balance”

« solde de pertes applicable »

“relevant loss balance”, at a particular time for a commercial obligation and in respect of a debtor’s non-capital loss, farm loss, restricted farm loss or net capital loss, as the case may be, for a particular taxation year, is

• (a) subject to paragraph (b), the amount of such loss that would be deductible in computing the debtor’s taxable income or taxable income earned in Canada, as the case may be, for the taxation year that includes that time if

  • (i) the debtor had sufficient incomes from all sources and sufficient taxable capital gains,

  • (ii) subsections (3) and (4) did not apply to reduce such loss at or after that time, and

  • (iii) paragraph 111(4)(a) and subsection 111(5) did not apply to the debtor, and

• (b) nil if the debtor is a taxpayer that was at a previous time subject to a loss restriction event and the particular year ended before the previous time, unless

  • (i) the obligation was issued by the debtor before, and not in contemplation of, the loss restriction event, or

  • (ii) all or substantially all of the proceeds from the issue of the obligation were used to satisfy the principal amount of another obligation to which subparagraph (i) or this subparagraph would apply if the other obligation were still outstanding;

“unrecognized loss”

« perte non constatée »

“unrecognized loss”, at a particular time, in respect of an obligation issued by a debtor, from the disposition of a property, is the amount that would, but for subparagraph 40(2)(g)(ii), be a capital loss from the disposition by the debtor at or before the particular time of a debt or other right to receive an amount, except that if the debtor is a taxpayer that is subject to a loss restriction event before the particular time and after the time of the disposition, the unrecognized loss at the particular time in respect of the obligation is nil unless

• (a) the obligation was issued by the debtor before, and not in contemplation of, the loss restriction event, or

• (iv) if the member is a taxpayer that was subject to a loss restriction event at a particular time that is before the end of that fiscal period and before the taxpayer became a member of the partnership, and the partnership obligation was issued before the particular time,

  • (A) subject to the application of this subparagraph to the taxpayer after the particular time and before the end of that fiscal period, the obligation referred to in subparagraph (i) is deemed to have been issued by the member after the particular time, and

  • (B) subparagraph (b)(ii) of the definition “relevant loss balance” in subsection (1), paragraph (f) of the definition “successor pool” in that subsection and paragraph (b) of the definition “unrecognized loss” in that subsection do not apply in respect of the loss restriction event, and

• (h) if the transferee is a taxpayer that is subject to a loss restriction event after the time of issue and the transferee and the debtor were, if the transferee is a corporation, not related to each other  —  or, if the transferee is a trust, not affiliated with each other  —  immediately before the loss restriction event,

  • (i) the obligation referred to in paragraph (e) is deemed to have been issued after the loss restriction event, and

  • (ii) subparagraph (b)(ii) of the definition “relevant loss balance” in subsection 80(1), paragraph (f) of the definition “successor pool” in that subsection and paragraph (b) of the definition “unrecognized loss” in that subsection do not apply in respect of the loss restriction event,

Marginal note:Synthetic disposition

• 80.6 (1) If a synthetic disposition arrangement is entered into in respect of a property owned by a taxpayer and the synthetic disposition period of the arrangement is one year or more, the taxpayer is deemed

  • (a) to have disposed of the property immediately before the beginning of the synthetic disposition period for proceeds equal to its fair market value at the beginning of the synthetic disposition period; and

  • (b) to have reacquired the property at the beginning of the synthetic disposition period at a cost equal to that fair market value.

• Marginal note:Exception

  (2) Subsection (1) does not apply in respect of a property owned by a taxpayer if

  • (a) the disposition referred to in subsection (1) would not result in the realization of a capital gain or income;

  • (b) the property is a mark-to-market property (as defined in subsection 142.2(1)) of the taxpayer;

  • (c) the synthetic disposition arrangement referred to in subsection (1) is a lease of tangible property or, for civil law, corporeal property;

  • (d) the arrangement is an exchange of property to which subsection 51(1) applies; or

  • (e) the property is disposed of as part of the arrangement, within one year after the day on which the synthetic disposition period of the arrangement begins.

• Marginal note:Continuation

  (g.1) for the purposes of sections 12.4 and 26, subsection 97(3) and section 256.1, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;

• (iv) a qualifying income limit for the particular year equal to the total of all amounts each of which is a predecessor corporation’s qualifying income limit for its taxation year that ended immediately before the amalgamation;

• (i) “specified person”, at any time, means

  • (A) the parent,

  • (B) each person who would be related to the parent at that time if

    • (I) this Act were read without reference to paragraph 251(5)(b), and

    • (II) each person who is the child of a deceased individual were related to each brother or sister of the individual and to each child of a deceased brother or sister of the individual, and

  • (C) if the time is before the incorporation of the parent, each person who is described in clause (B) throughout the period that begins at the time the parent is incorporated and ends at the time that is immediately before the beginning of the winding-up,

• (i.1) a person described in clause (i)(B) or (C) is deemed not to be a specified person if it can reasonably be considered that one of the main purposes of one or more transactions or events is to cause the person to be a specified person so as to prevent a property that is distributed to the parent on the winding-up from being an ineligible property for the purposes of paragraph (c),

• (A.1) a corporation controlled by another corporation is, at any time, deemed not to own any shares of the capital stock of the other corporation if, at that time, the corporation does not have a direct or an indirect interest in any of the shares of the capital stock of the other corporation,

• (A.2) the definition “specified shareholder” in subsection 248(1) is to be read without reference to its paragraph (a) in respect of any share of the capital stock of the subsidiary that the person would, but for this clause, be deemed to own solely because the person has a right described in paragraph 251(5)(b) to acquire shares of the capital stock of a corporation that

  • (I) is controlled by the subsidiary, and

  • (II) does not have a direct or an indirect interest in any of the shares of the capital stock of the subsidiary, and

• (iv) property that is distributed to the parent on the winding-up is deemed not to be acquired by a person if the person acquired the property before the acquisition of control referred to in clause (c)(vi)(A) and the property is not owned by the person at any time after that acquisition of control;

• (i) property (other than a specified property) owned by the person at any time after the acquisition of control referred to in clause (c)(vi)(A) more than 10% of the fair market value of which is, at that time, attributable to the particular property or properties, and

• (ii) an indebtedness that was issued

  • (A) by the parent as consideration for the acquisition of a share of the capital stock of the subsidiary by the parent, or

  • (B) for consideration that consists solely of money,

• (v) if the subsidiary was formed on the amalgamation of two or more predecessor corporations at least one of which was a subsidiary wholly-owned corporation of the parent,

  • (A) a share of the capital stock of the subsidiary that was issued on the amalgamation and that is, before the beginning of the winding-up,

    • (I) redeemed, acquired or cancelled by the subsidiary for consideration that consists solely of money or shares of the capital stock of the parent, or of any combination of the two, or

    • (II) exchanged for shares of the capital stock of the parent, or

  • (B) a share of the capital stock of the parent issued on the amalgamation in exchange for a share of the capital stock of a predecessor corporation, and

• (vi) a share of the capital stock of a corporation issued to a person described in clause (c)(vi)(B) if all the shares of the capital stock of the subsidiary were acquired by the parent for consideration that consists solely of money;

• (c.9) for the purposes of paragraph (c.4), a reference to a share of the capital stock of a corporation includes a right to acquire a share of the capital stock of the corporation;

• (ii) the amount designated in respect of any such capital property may not exceed the amount determined by the formula

  A – (B + C)

  where

  A

  is the fair market value of the property at the time the parent last acquired control of the subsidiary,

  B

  is the greater of the cost amount to the subsidiary of the property at the time the parent last acquired control of the subsidiary and the cost amount to the subsidiary of the property immediately before the winding-up, and

  C

  is the prescribed amount, and

• (C) the parent’s qualifying income limit for that last year is deemed to be the total of

  • (I) its qualifying income limit (determined before applying this paragraph to the winding-up) for that last year, and

  • (II) the total of the subsidiary’s qualifying income limits (determined without reference to subparagraph (iii)) for its taxation years that ended in that preceding calendar year,

• (C) the parent’s qualifying income limit for that preceding taxation year is deemed to be the total of

  • (I) its qualifying income limit (determined before applying this paragraph to the winding-up) for that preceding taxation year, and

  • (II) the total of the subsidiary’s qualifying income limits (determined without reference to subparagraph (iii)) for the subsidiary’s taxation years that end in the calendar year in which that preceding taxation year ended, and

• (iii) where the parent and the subsidiary are associated with each other in the current year, the subsidiary’s taxable income, the subsidiary’s business limit and the subsidiary’s qualifying income limit for each taxation year that ends after the first time that the parent receives an asset of the subsidiary on the winding-up are deemed to be nil;