Common use of Determination of Net Income Clause in Contracts

Determination of Net Income. For the purposes of this Article, and subject to any modification made pursuant to Section 16.5, the net income of a Fund for a taxation year is equal to: (a) the Fund’s income for the taxation year that would be determined under the Tax Act if (i) no amount were included or deducted in respect of capital gains and capital losses, (ii) there were no gross-up in respect of taxable dividends from corporations resident in Canada, and (iii) no amount were deducted in respect of amounts that became payable to Unitholders minus (b) the amount that may be deducted, in computing the Fund’s taxable income for the taxation year, in respect of the Fund’s non-capital losses for prior taxation years.