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Telesat Canada Remission Order (SI/99-82)

Regulations are current to 2024-11-26

Telesat Canada Remission Order

SI/99-82

FINANCIAL ADMINISTRATION ACT

Registration 1999-08-18

Telesat Canada Remission Order

P.C. 1999-1335  1999-07-28

His Excellency the Governor General in Council, considering that it is in the public interest to do so, on the recommendation of the Minister of Finance, pursuant to subsection 23(2)Footnote a of the Financial Administration Act, hereby makes the annexed Telesat Canada Remission Order.

Interpretation

 The definitions in this section apply in this Order.

Act

Act means the Income Tax Act. (Loi)

former property

former property means the Anik E1 satellite in respect of which Telesat Canada has received proceeds of disposition referred to in paragraph 13(4)(a) of the Act. (ancien bien)

replacement property

replacement property means the property acquired as a replacement for the former property and to which subsection 13(4) of the Act would apply if it were read in accordance with paragraph 2(b) of this Order and if Telesat Canada had made an election under subsection 13(4) of the Act with respect to the replacement property in its return of income for the taxation year in which it acquired the property. (bien de remplacement)

Remission

 Subject to section 3, remission is hereby granted to Telesat Canada in respect of each of the 1996 and subsequent taxation years, of an amount equal to the amount, if any, by which

  • (a) the total of the tax payable under Part I and Part I.3 of the Act by Telesat Canada for the year and the interest and penalties in respect thereof payable by it under the Act for the year

exceeds

  • (b) the total of the tax that would be payable under Part I and Part I.3 of the Act by Telesat Canada for the year and the interest and penalties in respect thereof that would be payable by it under the Act for the year if the expression “the second taxation year following the initial year” in clause 13(4)(c)(ii)(A) and paragraph 44(1)(c) of the Act were read as “the taxation year that includes December 31, 1999” and if Telesat Canada had made an election, as and when required, under subsection 13(4) of the Act, with respect to the disposition of the former property and the acquisition of the replacement property.

Conditions

 Remission is granted under section 2 on condition that

  • (a) in calculating the income or loss of Telesat Canada under the Act in respect of the 1996 and subsequent taxation years, no deduction in respect of the cost of the replacement property is claimed except to the extent that would be allowed if subsection 13(4) and section 44 of the Act were read in accordance with paragraph 2(b) of this Order and if Telesat Canada had made a valid election under subsection 13(4) of the Act with respect to the disposition of the former property and the acquisition of the replacement property; and

  • (b) if there is a disposition of the replacement property, the Act is treated by Telesat Canada and the person or partnership that acquired the replacement property as applying as if subsection 13(4) and section 44 of the Act were read in accordance with paragraph 2(b) of this Order and as if Telesat Canada had made a valid election under subsection 13(4) of the Act with respect to the disposition of the former property and the acquisition of the replacement property.


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