Common use of Determination of Net Realized Taxable Capital Gains Clause in Contracts

Determination of Net Realized Taxable Capital Gains. For the purposes of this Article, and subject to any modification made pursuant to Section 16.5, the net realized capital gains of a Fund for a taxation year are equal to two times the amount, if any, by which the Fund’s taxable capital gains for the year exceed the sum of: (a) the Fund’s allowable capital losses for the taxation year; (b) the amount that would be the Fund’s non-capital loss for the taxation year if it had no taxable capital gains for the taxation year; (c) the maximum amount of the Fund’s taxable capital gains for the taxation year determined so that, if the taxable capital gains are not payable to Unitholders of the Fund, the Fund is entitled to recover, as a capital gains refund for the taxation year, the tax payable by the Fund in respect of the taxable capital gains; and (d) the Fund’s net capital losses for prior taxation years which the Fund is permitted to deduct in computing its taxable income for the taxation year. If there is a change to the fraction of capital gains required by the Tax Act to be included in income, the factor of two will thereafter equal the reciprocal of the new fraction, and other amounts referred to in this Section will be adjusted to the extent necessary.