Tax wiki
s. 118.95
PART I — Income Tax · DIVISION E — Computation of Tax · SUBDIVISION A — Rules Applicable to Individuals · Annual Adjustment of Deductions and Other Amounts
Credits in year of bankruptcy
Not yet annotated · Text current to 2026-06-21 · section last amended 2017-01-01
Current text
Notwithstanding sections 118 to 118.9, for the purpose of computing an individual’s tax payable under this Part for a taxation year that ends in a calendar year in which the individual becomes bankrupt, the individual shall be allowed only
such of the deductions as the individual is entitled to under any of subsections 118(3) and (10) and sections 118.01 to 118.2, 118.5, 118.62 and 118.7, as can reasonably be considered wholly applicable to the taxation year, and
such part of the deductions as the individual is entitled to under any of sections 118 (other than subsections 118(3) and (10)), 118.3, 118.8 and 118.9 as can reasonably be considered applicable to the taxation year,
except that the total of the amounts so deductible for all taxation years of the individual in the calendar year under any of those provisions shall not exceed the amount that would have been deductible under that provision in respect of the calendar year if the individual had not become bankrupt.
Source: Justice Laws Website. Not an official version.
Historic text
Immediately preceding version, in force from 2009-12-15 to 2016-12-31:
Show the text in force 2009-12-15 to 2016-12-31
Credits in year of bankruptcy
118.95 Notwithstanding sections 118 to 118.9, for the purpose of computing an individual’s tax payable under this Part for a taxation year that ends in a calendar year in which the individual becomes bankrupt, the individual shall be allowed only
(a) such of the deductions as the individual is entitled to under any of subsections 118(3) and (10) and sections 118.01 to 118.2, 118.5, 118.6, 118.62 and 118.7, as can reasonably be considered wholly applicable to the taxation year, and
(b) such part of the deductions as the individual is entitled to under any of sections 118 (other than subsections 118(3) and (10)), 118.3, 118.8 and 118.9 as can reasonably be considered applicable to the taxation year,
except that the total of the amounts so deductible for all taxation years of the individual in the calendar year under any of those provisions shall not exceed the amount that would have been deductible under that provision in respect of the calendar year if the individual had not become bankrupt.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 1998, c. 19, s. 136
- 1999, c. 22, s. 42
- 2006, c. 4, s. 69
- 2007, c. 2, s. 30
- 2009, c. 31, s. 12
Earlier versions: Justice Laws point-in-time versions of the Act (from 31 August 2004), and CanLII (under “Versions”). On Justice Laws, each version of section 118.95 links to the one before it.
Enacting and amending legislation
- 1998, c. 19, s. 136; 1999, c. 22, s. 42; 2006, c. 4, s. 69; 2007, c. 2, s. 30; 2009, c. 31, s. 12; 2016, c. 7, s. 24
Text before 2004 is found in the annual Statutes of Canada cited above. Application and coming-into-force provisions are not part of the consolidation; see the amending Acts.
Cross-references
Citation
Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 118.95.