Corporations on IFRS should use “total comprehensive income” as their starting point for determining adjusted net income for Ontario CMT purposes

Where a corporation uses IFRS, it should use “Total comprehensive income” as a starting point in determining its adjusted net income/adjusted net loss (ANI/ANL) for Ontario corporate minimum tax purposes provided that the consolidation and equity methods of accounting are not used. However, some items reported in the “Statement of Comprehensive Income” may need to be removed in arriving at its ANI/ANL. “For example, adjustments for unrealized mark-to-market gains/losses on assets that are not required to be included in computing income for income tax purposes are not included in ANI/ANL for CMT purposes.”

Neal Armstrong. Summary of 14 November 2016 Internal T.I. 2015-0600281I7 under Taxation Act 2007 (Ont.), s. 54(2)(a).