Canadian exploration
expense
See discussion on page 12.
Canadian oil and gas
property expense
See discussion on page 13.
Canadian partnership
At any time is a partnership all of the members of which are
resident in Canada at that time.
Canadian resource property
A mining property or an oil and gas property in Canada.
Capital cost allowance
The amount allowed to be deducted from income to account
for the depreciation of capital property. The amount of capital
cost allowance available for a property in a year will depend on
its cost and what type of property it is. The Regulations contain
a detailed categorization of types of property and the rates at
which they can be depreciated.
Capital gain
A capital gain from a disposition of capital property is the amount
by which the proceeds of disposition exceed the adjusted cost
base and any reasonable costs of disposition.
Capital loss
A capital loss from a disposition of capital property is the amount
by which the adjusted cost base and any reasonable costs of
disposition exceed the proceeds of disposition.
Capital property
Capital property is property that, when disposed of, will give
rise to a capital gain or a capital loss, rather than a gain or loss
recognized on account of income. Property is capital property if
the taxpayer acquires it to produce income rather than to resell
it for a profit. Thus, inventory is not capital property, but each of
land (other than a resource property) and machinery used in the
mining process is capital property.
Capital tax
A tax on the capital of a corporation. For these purposes, the
capital of a corporation consists of its equity and debt less an
investment allowance for its interests in the equity and debt of
other corporations.
Control
There are two types of control of a corporation recognized by
the ITA: de jure control and de facto control.
De jure control contemplates the right of control that rests in
ownership of such a number of shares as carries with it the
right to a majority of the votes in the election of the board of
directors.
De facto control contemplates control of a corporation, directly
or indirectly in any manner whatever, as a matter of fact by the
exertion of influence on the business and affairs of the corporation.
For the purposes of the acquisition-of-control rules in the ITA,
an acquisition of control of a corporation occurs where a person
acquires de jure control of the corporation.
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Glossary
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