Income Tax Regulations

7307 (1) For the purposes of subsection 13(2), paragraph 13(7)(g), subparagraph 13(7)(h)(iii), subsections 20(4) and (16.1), the description of B in paragraph 67.3(d) and subparagraph 85(1)(e.4)(i) of the Act, the amount prescribed is

• (a) with respect to an automobile acquired, or leased under a lease entered into, after August 1989 and before 1991, $24,000; and

• (b) with respect to an automobile acquired, or leased under a lease entered into, after 1990, the amount determined by the formula

  A + B

  where

  A

  is, with respect to an automobile acquired, or leased under a lease entered into,

  • (i) before 1997, $24,000,

  • (ii) in 1997, $25,000,

  • (iii) in 1998 or 1999, $26,000,

  • (iv) in 2000, $27,000, or

  • (v) after 2000, $30,000, and

  B

  is the sum that would have been payable in respect of federal and provincial sales taxes on the acquisition of the automobile if it had been acquired, at a cost equal to A before the application of the federal and provincial sales taxes, if the automobile

  • (i) was acquired, at the time of the acquisition, or

  • (ii) was leased, at the time the lease was entered into.

(2) For the purpose of the description of A in section 67.2 of the Act, the amount prescribed in respect of an automobile that is acquired either after August 1989 and before 1997 or after 2000 is $300.

(3) For the purpose of the description of A in paragraph 67.3(c) of the Act, the amount prescribed in respect of a taxation year of a lessee is, with respect to an automobile leased under a lease entered into

• (a) after August 1989 and before 1991, $650; and

• (b) after 1990, the amount determined by the formula

  A + B

  where

  A

  is

  • (i) for leases entered into after 1990 but before 1997, $650,

  • (ii) for leases entered into in 1997, $550,

  • (iii) for leases entered into in 1998 or 1999, $650,

  • (iv) for leases entered into in 2000, $700, and

  • (v) for leases entered into after 2000, $800, and

  B

  is the sum of the federal and provincial sales taxes that would have been payable on a monthly payment under the lease in the taxation year of the lessee if, before those taxes, the lease had required monthly payments equal to A.

(4) For the purpose of the description of C in paragraph 67.3(d) of the Act, the amount prescribed in respect of an automobile leased under a lease entered into after August 1989 is the amount equal to 100/85 of the amount determined in accordance with subsection (1) in respect of the automobile.