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

PART VIElections

600 For the purposes of paragraphs 220(3.2)(a) and (b) of the Act, the following are prescribed provisions:

• (a) section 21 of the Act;

• (b) subsections 13(4), (7.4) and (29), 20(24), 44(1) and (6), 45(2) and (3), 50(1), 53(2.1), 56.4(13), 70(6.2), (9.01), (9.11), (9.21) and (9.31), 72(2), 73(1), 80.1(1), 82(3), 83(2), 91(1.4), 104(14), 107(2.001), 143(2), 146.01(7), 146.02(7), 164(6) and (6.1), 184(3), 251.2(6) and 256(9) of the Act;

• (c) paragraphs 12(2.2)(b), 66.7(7)(c), (d) and (e) and (8)(c), (d) and (e), 80.01(4)(c), 86.1(2)(f) and 128.1(4)(d), (6)(a) and (c), (7)(d) and (g) and (8)(c) of the Act;

• (d) subsections 1103(1), (2) and (2d) and 5907(2.1) of these Regulations.

PART VIILogging Taxes on Income

Logging

• 700 (1) Except as provided in subsection (2), for the purposes of paragraph 127(2)(a) of the Act income for the year from logging operations in the province means the aggregate of

  • (a) where standing timber is cut in the province by the taxpayer or logs cut from standing timber in the province are acquired by the taxpayer and the logs so obtained are sold by the taxpayer in the province before or on delivery to a sawmill, pulp or paper plant or other place for processing logs, the taxpayer’s income for the year from the sale, other than any portion thereof that was included in computing the taxpayer’s income from logging operations in the province for a previous year;

  • (b) where standing timber in the province or the right to cut standing timber in the province is sold by the taxpayer, the taxpayer’s income for the year from the sale, other than any portion thereof that was included in computing the taxpayer’s income from logging operations in the province for a previous year;

  • (c) where standing timber is cut in the province by the taxpayer or logs cut from standing timber in the province are acquired by the taxpayer, if the logs so obtained are

    • (i) exported from the province and are sold by him prior to or on delivery to a sawmill, pulp or paper plant or other place for processing logs, or

    • (ii) exported from Canada,

    the amount computed by deducting from the value, as determined by the province, of the logs so exported in the year, the aggregate of the costs of acquiring, cutting, transporting and selling the logs; and

  • (d) where standing timber is cut in the province by the taxpayer or logs cut from standing timber in the province are acquired by the taxpayer, if the logs are processed by the taxpayer or by a person on his behalf in a sawmill, pulp or paper plant or other place for processing logs in Canada, the income of the taxpayer for the year from all sources minus the aggregate of

    • (i) his income from sources other than logging operations carried on in Canada and other than the processing in Canada by him or on his behalf and sale by him of logs, timber and products produced therefrom,

    • (ii) each amount included in the aggregate determined under this subsection by virtue of paragraph (a), (b) or (c), and

    • (iii) an amount equal to eight per cent of the original cost to him of properties described in Schedule II used by him in the year in the processing of logs or products derived therefrom or, if the amount so determined is greater than 65 per cent of the income remaining after making the deductions under subparagraphs (i) and (ii), 65 per cent of the income so remaining or, if the amount so determined is less than 35 per cent of the income so remaining, 35 per cent of the income so remaining.

• (2) Where the taxpayer cuts standing timber or acquires logs cut from standing timber in more than one province, for the purposes of paragraph 127(2)(a) of the Act income for the year from logging operations in the province means the aggregate of

  • (a) the amounts determined in respect of that province in accordance with paragraphs (1)(a), (b) and (c); and

  • (b) where the logs are processed by the taxpayer or by a person on his behalf in a sawmill, pulp or paper plant or other place for processing logs in Canada, an amount equal to the proportion of the income of the taxpayer for the year from all sources minus the aggregate of

    • (i) his income from sources other than logging operations carried on in Canada and other than the processing in Canada by him or on his behalf and sale by him of logs, timber and products produced therefrom,

    • (ii) the aggregate of amounts determined in respect of each province in accordance with paragraphs (1)(a), (b) and (c), and

    • (iii) an amount equal to eight per cent of the original cost to him of properties described in Schedule II used by him in the year in the processing of logs or products derived therefrom or, if the amount so determined is greater than 65 per cent of the income remaining after making the deductions under subparagraphs (i) and (ii), 65 per cent of the income so remaining or, if the amount so determined is less than 35 per cent of the income so remaining, 35 per cent of the income so remaining,

    that

    • (iv) the quantity of standing timber cut in the province in the year by the taxpayer and logs cut from standing timber in the province acquired by the taxpayer in the year,

    is of

    • (v) the total quantity of standing timber cut and logs acquired in the year by the taxpayer.

• (3) For the purpose of the definition logging tax in subsection 127(2) of the Act, each of the following is declared to be a tax of general application on income from logging operations:

  • (a) the tax imposed by the Province of British Columbia under the Logging Tax Act, R.S.B.C. 1996, c. 277; and

  • (b) the tax imposed by the Province of Quebec under Part VII of the Taxation Act, R.S.Q., c. I-3.

701 [Repealed, SOR/78-377, s. 2]

PART VIIINon-Resident Taxes

Registered Non-Resident Insurers

800 Subsections 215(1), (2) and (3) of the Act do not apply to amounts paid or credited to a registered non-resident insurer.

Filing of Returns by Registered Non-Resident Insurers

801 A taxpayer that is a registered non-resident insurer in a taxation year shall file a return for the taxation year in prescribed form with the Minister on or before its filing-due date for the taxation year.

Amounts Taxable

802 The amounts that are taxable under Part XIII of the Act in a taxation year of a taxpayer that is a registered non-resident insurer in the taxation year are amounts paid or credited to the taxpayer in the taxation year other than amounts included under Part I of the Act in computing the taxpayer’s income from a business carried on by it in Canada.

Payment of Tax by Registered Non-Resident Insurers

803 A taxpayer that is a registered non-resident insurer in a taxation year shall pay to the Receiver General, on or before its filing-due date for the taxation year, the tax payable by it under Part XIII of the Act in the taxation year.

803.1 [Repealed, SOR/2009-302, s. 5]

Interpretation

804 In this Part, registered non-resident insurer means a non-resident corporation approved to carry on business in Canada under the Insurance Companies Act.

Other Non-Resident Persons

805 Subject to section 802, every non-resident person who carries on business in Canada is taxable under Part XIII of the Act on all amounts otherwise taxable under that Part except those amounts that

• (a) may reasonably be attributed to the business carried on by the person through a permanent establishment (within the meaning assigned by section 8201) in Canada; or

• (b) are required by subparagraph 115(1)(a)(iii.3) of the Act to be included in computing the person’s taxable income earned in Canada for the year.

Payee Certificate

805.1 If a person (in this section referred to as the “payee”) files an application under this section with the Minister in respect of the anticipated payment or crediting of an amount to the payee, and the Minister determines that the amount is an amount described in paragraph 805(a) or (b), the Minister shall issue to the payee a certificate that records that determination.

International Organizations and Agencies

806 For the purposes of paragraph (c) of the definition fully exempt interest in subsection 212(3) of the Act, the Bank for International Settlements and the European Bank for Reconstruction and Development are prescribed.

806.1 [Repealed, 2017, c. 33, s. 90]

Prescribed Obligation

806.2 For the purposes of the definition participating debt interest in subsection 212(3) of the Act, an obligation is a prescribed obligation if it is an indexed debt obligation and no amount payable in respect of it is

• (a) contingent or dependent upon the use of, or production from, property in Canada; or

• (b) computed by reference to

  • (i) revenue, profit, cash flow, commodity price or any other similar criterion, other than a change in the purchasing power of money, or

  • (ii) dividends paid or payable to shareholders of any class of shares.

Identification of Obligations

807 For the purposes of subsection 240(2) of the Act, the letters “AX” or the letter “F”, as the case may be, shall be clearly and indelibly printed in gothic or similar style capital letters of seven point or larger size either as a prefix to the coupon number or on the lower right hand corner of each coupon or other writing issued in evidence of a right to interest on an obligation referred to in that subsection.

Allowances in Respect of Investment in Property in Canada

• 808 (1) For the purposes of paragraph 219(1)(j) of the Act, the allowance of a corporation (other than an authorized foreign bank) for a taxation year in respect of its investment in property in Canada is prescribed to be the amount, if any, by which

  • (a) the corporation’s qualified investment in property in Canada at the end of the year,

  exceeds

  • (b) the amount determined under this paragraph for the immediately preceding taxation year.

• (1.1) Notwithstanding subsections (1) and (8), for the purpose of paragraph 219(1)(j) of the Act, the allowance of a corporation that becomes resident in Canada at any time is, in respect of its investment in property in Canada for its last taxation year that ends before that time, prescribed to be nil.

• (2) For the purposes of subsection (1), where, at the end of a taxation year, a corporation is not a member of a partnership that was carrying on business in Canada at any time in the year, the corporation’s “qualified investment in property in Canada at the end of the year” is the amount, if any, by which the aggregate of

  • (a) the cost amount to the corporation, at the end of the year, of land in Canada owned by it at that time for the purpose of gaining or producing income from a business carried on by it in Canada, other than land that is

    • (i) described in the corporation’s inventory,

    • (ii) depreciable property,

    • (iii) a Canadian resource property, or

    • (iv) land the cost of which is or was deductible in computing the corporation’s income,

  • (b) an amount equal to the aggregate of the cost amount to the corporation, immediately after the end of the year, of each depreciable property in Canada owned by it for the purpose of gaining or producing income from a business carried on by it in Canada,

  • (c) [Repealed, 2016, c. 12, s. 77]

  • (d) where the corporation is not a principal-business corporation, within the meaning assigned by subsection 66(15) of the Act, an amount equal to the total of the corporation’s

    • (i) Canadian exploration and development expenses incurred by the corporation before the end of the year, except to the extent that those expenses were deducted in computing the corporation’s income for the year or for a previous taxation year, and

    • (ii) cumulative Canadian exploration expense, within the meaning assigned by subsection 66.1(6) of the Act, at the end of the year minus any deduction under subsection 66.1(3) of the Act in computing the corporation’s income for the year,

  • (d.1) an amount equal to the corporation’s cumulative Canadian development expense, within the meaning assigned by subsection 66.2(5) of the Act, at the end of the year minus any deduction under subsection 66.2(2) of the Act in computing the corporation’s income for the year,

  • (d.2) an amount equal to the corporation’s cumulative Canadian oil and gas property expense, within the meaning assigned by subsection 66.4(5) of the Act, at the end of the year minus any deduction under subsection 66.4(2) of the Act in computing the corporation’s income for the year,

  • (e) an amount equal to the aggregate of the cost amount to the corporation at the end of the year of each debt owing to it, or any other right of the corporation to receive an amount, that was outstanding as a result of the disposition by it of property in respect of which an amount would be included, by virtue of paragraph (a), (b) or (h), in its qualified investment in property in Canada at the end of the year if the property had not been disposed of by it before the end of that year,

  • (f) an amount equal to the aggregate of the cost amount to the corporation at the end of the year of each property, other than a Canadian resource property, that was described in the corporation’s inventory in respect of a business carried on by it in Canada,

  • (g) an amount equal to the aggregate of the cost amount to the corporation at the end of the year of each debt (other than a debt referred to in paragraph (e) or a debt the amount of which was deducted under paragraph 20(1)(p) of the Act in computing the corporation’s income for the year) owing to it

    • (i) in respect of any transaction by virtue of which an amount has been included in computing its income for the year or for a previous year from a business carried on by it in Canada, or

    • (ii) where any part of its ordinary business carried on in Canada was the lending of money, in respect of a loan made by the corporation in the ordinary course of that part of its business, and

  • (h) [Repealed, SOR/2009-302, s. 7]

  • (i) an amount equal to the allowable liquid assets of the corporation at the end of the year,

  exceeds the aggregate of

  • (j) an amount equal to the total of all amounts each of which is an amount deducted under paragraph 20(1)(l), (l.1) or (n) of the Act in computing the corporation’s income for the year from a business carried on by the corporation in Canada,

  • (k) an amount equal to the aggregate of all amounts each of which is an amount deducted by the corporation in the year under subparagraph 40(1)(a)(iii) or 44(1)(e)(iii) of the Act in respect of a debt referred to in paragraph (e);

  • (l) an amount equal to the aggregate of each amount owing by the corporation at the end of the year on account of

    • (i) the purchase price of property that is referred to in paragraph (a), (b) or (f) or that would be so referred to but for the fact that it has been disposed of before the end of the year,

    • (ii) Canadian exploration and development expenses, Canadian exploration expense, Canadian development expense or Canadian oil and gas property expense, or

    • (iii) [Repealed, 2016, c. 12, s. 77]

    • (iv) any other outlay or expense made or incurred by the corporation to the extent that it was deducted in computing its income for the year or for a previous taxation year from a business carried on by it in Canada;

  • (m) an amount equal to the aggregate of all amounts each of which is an amount equal to that proportion of the amount owing (other than an amount owing on account of an outlay or expense referred to in paragraph (l)) by the corporation at the end of the year on account of an obligation outstanding at any time in the year in respect of which interest is stipulated to be payable by it that

    • (i) the interest paid or payable on the obligation by the corporation in respect of the year that is deductible, or would be deductible but for subsection 18(2), (3.1) or (4) or section 21 of the Act, in computing its income for the year from a business carried on by it in Canada,

    is of

    • (ii) the interest paid or payable on the obligation by the corporation in respect of the year;

  • (n) the amount, if any, by which

    • (i) the amount (referred to in this paragraph as “Part I liability”), if any, by which the tax payable for the year by the corporation under Part I of the Act exceeds the amount, if any, paid by the corporation before the end of the year on account thereof,

    exceeds

    • (ii) that proportion of the Part I liability that the amount, if any, in respect of the corporation for the year that is the lesser of

      • (A) the amount, if any, by which the total of all amounts each of which is a taxable capital gain of the corporation for the year from a disposition of a taxable Canadian property that was not used or held by it in the year in the course of carrying on business in Canada exceeds the total of all amounts each of which is an allowable capital loss of the corporation for the year from a disposition of such a property, and

      • (B) the amount that would be determined under clause (A) for the year if it were read without reference to the expression “that was not used or held by it in the year in the course of carrying on business in Canada”,

      is of the corporation’s taxable income earned in Canada for the year; and

    • (iii) [Repealed, SOR/2009-302, s. 7]

  • (o) the amount, if any, by which

    • (i) the amount (referred to in this paragraph as “provincial tax liability”), if any, by which any income taxes payable for the year by the corporation to the government of a province (to the extent that such taxes were not deductible under Part I of the Act in computing the corporation’s income for the year from a business carried on by it in Canada) exceeds the amount, if any, paid by the corporation before the end of the year on account thereof,

    exceeds

    • (ii) that proportion of the provincial tax liability that the amount, if any, in respect of the corporation for the year that is the lesser of

      • (A) the amount, if any, by which the total of all amounts each of which is a taxable capital gain of the corporation for the year from a disposition of a taxable Canadian property that was not used or held by it in the year in the course of carrying on business in Canada exceeds the total of all amounts each of which is an allowable capital loss of the corporation for the year from a disposition of such a property, and

      • (B) the amount that would be determined under clause (A) for the year if it were read without reference to the expression “that was not used or held by it in the year in the course of carrying on business in Canada”,

      is of the corporation’s taxable income earned in Canada for the year.

    • (iii) [Repealed, SOR/2009-302, s. 7]

  • (p) [Repealed, SOR/2009-302, s. 7]

• (3) For the purposes of paragraph (2)(i), the “allowable liquid assets of the corporation at the end of the year” is an amount equal to the lesser of

  • (a) the aggregate of

    • (i) the amount of Canadian currency owned by the corporation at the end of that year,

    • (ii) the balance standing to the credit of the corporation at the end of that year as or on account of amounts deposited with a branch or other office in Canada of

      • (A) a bank,

      • (B) a corporation licenced or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee, or

      • (C) a credit union, and

    • (iii) an amount equal to the aggregate of the cost amount to the corporation at the end of that year of each bond, debenture, bill, note, mortgage or similar obligation that was not described in the corporation’s inventory in respect of a business carried on by it in Canada (other than a debt referred to in paragraph (2)(e) or (g) or a debt the amount of which was deducted under paragraph 20(1)(p) of the Act in computing the corporation’s income for the year), that was issued by a person resident in Canada with whom the corporation was dealing at arm’s length and that matures within one year after the date on which it was acquired by the corporation,

    to the extent that such amounts are attributable to the profits of the corporation from carrying on a business in Canada, or are used or held by the corporation in the year in the course of carrying on a business in Canada; and

  • (b) an amount equal to 4/3 of the quotient obtained by dividing

    • (i) the aggregate of all amounts that would otherwise be determined under subparagraphs (a)(i), (ii) and (iii) if the references therein to “at the end of that year” were read as references to “at the end of each month in that year”,

    by

    • (ii) the number of months in that year.

• (4) For the purposes of subsection (1), where, at the end of a taxation year, a corporation is a member of a partnership that was carrying on business in Canada at any time in that year, the corporation’s qualified investment in property in Canada at the end of the year is an amount equal to the aggregate of

  • (a) the amount, if any, that would be determined under subsection (2) if the corporation were not, at the end of the year, a member of a partnership that was carrying on business in Canada at any time in the year; and

  • (b) an amount equal to the portion of the amount of the partnership’s qualified investment in property in Canada at the end of the last fiscal period of the partnership ending in the taxation year of the corporation that may reasonably be attributed to the corporation, having regard to all the circumstances including the rights the corporation would have, if the partnership ceased to exist, to share in the distribution of the property owned by the partnership for the purpose of gaining or producing income from a business carried on by it in Canada.

• (5) For the purposes of subsection (4), a partnership’s “qualified investment in property in Canada” at the end of a fiscal period is the amount, if any, by which the aggregate of

  • (a) the cost amount to the partnership, at the end of the fiscal period, of land in Canada owned by it at that time for the purpose of gaining or producing income from a business carried on by it in Canada, other than land that is

    • (i) described in the inventory of the partnership,

    • (ii) depreciable property,

    • (iii) a Canadian resource property, or

    • (iv) land the cost of which is or was deductible in computing the income of the partnership or the income of a member of the partnership,

  • (b) an amount equal to the aggregate of the cost amount to the partnership, immediately after the end of the fiscal period, of each depreciable property in Canada owned by it for the purpose of gaining or producing income from a business carried on by it in Canada,

  • (c) an amount equal to 4/3 of the cumulative eligible capital of the partnership immediately after the end of the fiscal period in respect of each business carried on by it in Canada,

  • (d) an amount equal to the aggregate of the cost amount to the partnership at the end of the fiscal period of each debt owing to it, or any other right of the partnership to receive an amount, that was outstanding as a result of the disposition by it of property in respect of which an amount would be included, by virtue of paragraph (a), (b) or (c), in its qualified investment in property in Canada at the end of the fiscal period if the property had not been disposed of by it before the end of that fiscal period,

  • (e) an amount equal to the aggregate of the cost amount to the partnership at the end of the fiscal period of each property, other than a Canadian resource property, that was described in the partnership’s inventory in respect of a business carried on by it in Canada,

  • (f) an amount equal to the aggregate of the cost amount to the partnership at the end of the fiscal period of each debt (other than a debt referred to in paragraph (d) or a debt the amount of which was deducted under paragraph 20(1)(p) of the Act in computing the partnership’s income for the fiscal period) owing to it

    • (i) in respect of any transaction by virtue of which an amount has been included in computing its income for the fiscal period or for a previous fiscal period or in computing the income of a member of the partnership for a previous taxation year from a business carried on in Canada by the partnership, or

    • (ii) where any part of its ordinary business carried on in Canada was the lending of money, in respect of a loan made by the partnership in the ordinary course of that part of its business, and

  • (g) an amount equal to the allowable liquid assets of the partnership at the end of the fiscal period,

  exceeds the aggregate of

  • (h) an amount equal to the total of all amounts each of which is an amount deducted under paragraph 20(1)(l), (l.1) or (n) of the Act in computing the partnership’s income for the fiscal period from a business carried on by the partnership in Canada;

  • (i) an amount equal to the aggregate of all amounts each of which is an amount deducted by the partnership in the fiscal period under subparagraph 40(1)(a)(iii) or 44(1)(e)(iii) of the Act in respect of a debt referred to in paragraph (d);

  • (j) an amount equal to the aggregate of each amount owing by the partnership at the end of the fiscal period on account of

    • (i) the purchase price of property that is referred to in paragraph (a), (b) or (e) or that would be so referred to but for the fact that it has been disposed of before the end of the fiscal period,

    • (ii) Canadian exploration and development expenses, Canadian exploration expense, Canadian development expense or Canadian oil and gas property expense,

    • (iii) an eligible capital expenditure made or incurred by the partnership before the end of the fiscal period in respect of a business carried on by it in Canada, or

    • (iv) any other outlay or expense made or incurred by the partnership to the extent that it was deducted in computing its income for the fiscal period or for a previous fiscal period, or in computing the income of a member of the partnership for a previous taxation year, from a business carried on in Canada by the partnership; and

  • (k) an amount equal to the aggregate of all amounts each of which is an amount equal to that proportion of the amount owing (other than an amount owing on account of an outlay or expense referred to in paragraph (j)) by the partnership at the end of the fiscal period on account of an obligation outstanding at any time in the period in respect of which interest is stipulated to be payable by it that

    • (i) the interest paid or payable on the obligation by the partnership in respect of the fiscal period that is deductible, or would be deductible but for subsection 18(2) or (3.1) or section 21 of the Act, in computing its income for the fiscal period from a business carried on by it in Canada,

    is of

    • (ii) the interest paid or payable on the obligation by the partnership in respect of the fiscal period.

• (6) For the purposes of paragraph (5)(g), the “allowable liquid assets of the partnership at the end of the fiscal period” is an amount equal to the lesser of

  • (a) the total of the following amounts (to the extent that those amounts are attributable to the profits of the partnership from carrying on a business in Canada, or are used or held by the partnership in the year in the course of carrying on a business in Canada):

    • (i) the amount of Canadian currency owned by the partnership at the end of that fiscal period,

    • (ii) the balance standing to the credit of the partnership at the end of that fiscal period as or on account of amounts deposited with a branch or other office in Canada of

      • (A) a bank,

      • (B) a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee, or

      • (C) a credit union, and

    • (iii) an amount equal to the aggregate of the cost amount to the partnership at the end of that fiscal period of each bond, debenture, bill, note, mortgage, hypothec or similar obligation that was not described in the partnership’s inventory in respect of a business carried on by it in Canada (other than a debt referred to in paragraph (5)(d) or (f) or a debt the amount of which was deducted under paragraph 20(1)(p) of the Act in computing the partnership’s income for the fiscal period), that was issued by a person resident in Canada with whom all the members of the partnership were dealing at arm’s length and that matures within one year after the date on which it was acquired by the partnership; and

  • (b) an amount equal to 4/3 of the quotient obtained by dividing

    • (i) the aggregate of all amounts that would otherwise be determined under subparagraphs (a)(i), (ii) and (iii) if the references therein to “at the end of that fiscal period” were read as references to “at the end of each month in that fiscal period”,

    by

    • (ii) the number of months in that fiscal period.

• (7) Subsections (4) to (6) shall be read and construed as if each of the assumptions in paragraphs 96(1)(a) to (g) of the Act were made.

• (8) For the purpose of paragraph 219(1)(j) of the Act, the allowance of an authorized foreign bank for a taxation year in respect of its investment in property in Canada is prescribed to be the amount, if any, by which

  • (a) the average of all amounts, each of which is the amount for a calculation period (within the meaning assigned by subsection 20.2(1) of the Act) of the bank for the year that is the greater of

    • (i) the amount determined by the formula

      0.05 × A

      where

      A

      is the amount of the element A in the formulae in subsection 20.2(3) of the Act for the period, and

    • (ii) the amount by which

      • (A) the total of the cost amount to the bank, at the end of the period (or, in the case of depreciable property or eligible capital property, immediately after the end of the year), of each asset in respect of the bank’s Canadian banking business that is an asset recorded in the books of account of the business in a manner consistent with the manner in which it is required to be treated for the purpose of the branch financial statements (within the meaning assigned by subsection 20.2(1) of the Act) for the year

      exceeds

      • (B) the amount equal to the total of

        • (I) the amount determined by the formula

          L + BA

          where

          L

          is the amount of the element L in the formulae in subsection 20.2(3) of the Act for the period, and

          BA

          is the amount of the element BA in the formulae in subsection 20.2(3) of the Act for the period, and

        • (II) the amount claimed by the bank under clause 20.2(3)(b)(ii)(A) of the Act

  exceeds

  • (b) the total of all amounts each of which is an amount that would be determined under paragraph (2)(j), (k), (n) or (o) if that provision applied to the bank for the year, except to the extent that the amount reflects a liability of the bank that has been included in the element L in the formulae in subsection 20.2(3) of the Act for the bank’s last calculation period for the year.