D-17 - Land Transfer Duties Act

Section 41 Disposition versions

2019-06-13

41. (1)  There shall be an exemption from the payment of duties where the transferee is a person described in subsection 2, provided the application for registration of the transfer mentions the description of such person that appears in the said subsection and the fact that he fulfills one of the conditions provided for in subsections 3 to 6.

(2)  The person contemplated in subsection 1 is:

(a)  an insurer authorized under the Insurers Act (chapter A-32.1) or a corporation authorized under an Act of a jurisdiction other than Québec to carry on insurer activities elsewhere in Canada;

(b)  a corporation of which at least 90% of the issued shares of the capital stock, to which are attached full voting rights, are owned by an insurance corporation which is a person not resident in Canada described in paragraph a;

(c)  a partnership, association, syndicate or any other group which is not resident in Canada solely by the fact that a corporation described in paragraph a or b is a member thereof; or

(d)  a corporation that is not resident in Canada solely by the fact that one or more corporations not resident in Canada described in paragraph a or b are owners of shares of the capital stock of one of such corporations.

(3)  Where the transferee is an insurance corporation other than an insurance corporation incorporated in Canada,

(a)  if the corporation has made the election provided for in section 825 of the Taxation Act (chapter I-3), all its gross investment income from the land in question must be included in computing its income under the said Act;

(b)  if the corporation has not made the election described in paragraph a, the land in question must be held in trust in accordance with the prescribed rules.

(4)  Where the transferee is an insurance corporation incorporated in Canada, the land in question must not form part of the property of the corporation excluded by regulation.

(5)  Where the transferee is a corporation of which at least 90% of the issued shares of the capital stock to which are attached full voting rights are owned by an insurance corporation not resident in Canada described in paragraph a of subsection 2, the latter corporation must certify that the land in question will be considered by the transferee to be an investment made and held in favour of the business the insurance corporation carries on in Canada.

(6)  Where the transferee is a corporation not resident in Canada or a partnership, association or syndicate or any other group that is not resident in Canada solely by the fact that one or more corporations not resident in Canada described in paragraph a or b of subsection 2 are the owners of shares of the capital stock of one of such corporations or are members of such transferee, such corporation or corporations must certify, after reasonable inquiry, that the transferee would not be a person not resident in Canada were it not for the fact that such corporation or corporations are such owners or members.

1976, c. 23, s. 41; 1974, c. 70, s. 473; 1994, c. 22, s. 17; 2018, c. 23, s. 756.

1994-06-17

41. (1)  There shall be an exemption from the payment of duties where the transferee is a person described in subsection 2, provided the application for registration of the transfer mentions the description of such person that appears in the said subsection and the fact that he fulfills one of the conditions provided for in subsections 3 to 6.

(2)  The person contemplated in subsection 1 is:

(a)  an insurance corporation authorized under the Act respecting insurance (chapter A-32) to carry on insurance business in Québec or authorized under a prescribed law to carry on such business in Canada;

(b)  a corporation of which at least 90% of the issued shares of the capital stock, to which are attached full voting rights, are owned by an insurance corporation which is a person not resident in Canada described in paragraph a;

(c)  a partnership, association, syndicate or any other group which is not resident in Canada solely by the fact that a corporation described in paragraph a or b is a member thereof; or

(d)  a corporation that is not resident in Canada solely by the fact that one or more corporations not resident in Canada described in paragraph a or b are owners of shares of the capital stock of one of such corporations.

(3)  Where the transferee is an insurance corporation other than an insurance corporation incorporated in Canada,

(a)  if the corporation has made the election provided for in section 825 of the Taxation Act (chapter I-3), all its gross investment income from the land in question must be included in computing its income under the said Act;

(b)  if the corporation has not made the election described in paragraph a, the land in question must be held in trust in accordance with the prescribed rules.

(4)  Where the transferee is an insurance corporation incorporated in Canada, the land in question must not form part of the property of the corporation excluded by regulation.

(5)  Where the transferee is a corporation of which at least 90% of the issued shares of the capital stock to which are attached full voting rights are owned by an insurance corporation not resident in Canada described in paragraph a of subsection 2, the latter corporation must certify that the land in question will be considered by the transferee to be an investment made and held in favour of the business the insurance corporation carries on in Canada.

(6)  Where the transferee is a corporation not resident in Canada or a partnership, association or syndicate or any other group that is not resident in Canada solely by the fact that one or more corporations not resident in Canada described in paragraph a or b of subsection 2 are the owners of shares of the capital stock of one of such corporations or are members of such transferee, such corporation or corporations must certify, after reasonable inquiry, that the transferee would not be a person not resident in Canada were it not for the fact that such corporation or corporations are such owners or members.

1976, c. 23, s. 41; 1974, c. 70, s. 473; 1994, c. 22, s. 17.

1977-12-31

41. (1)  There shall be an exemption from the payment of duties where the transferee is a person described in subsection 2, provided the deed of transfer mentions the description of such person that appears in the said subsection and the fact that he fulfills one of the conditions provided for in subsections 3 to 6.

(2)  The person contemplated in subsection 1 is:

(a)  an insurance corporation authorized under the Act respecting insurance (chapter A-32) to carry on insurance business in Québec or authorized under a prescribed law to carry on such business in Canada;

(b)  a corporation of which at least 90 per cent of the issued shares of the capital stock, to which are attached full voting rights, are owned by an insurance corporation which is a person not resident in Canada described in paragraph a;

(c)  a partnership, association, syndicate or any other group which is not resident in Canada solely by the fact that a corporation described in paragraph a or b is a member thereof; or

(d)  a corporation that is not resident in Canada solely by the fact that one or more corporations not resident in Canada described in paragraph a or b are owners of shares of the capital stock of one of such corporations.

(3)  Where the transferee is an insurance corporation other than an insurance corporation incorporated in Canada,

(a)  if the corporation has made the election provided for in section 825 of the Taxation Act (chapter I-3), all its gross investment income from the land in question must be included in computing its income under the said act;

(b)  if the corporation has not made the election described in paragraph a, the land in question must be held in trust in accordance with the prescribed rules.

(4)  Where the transferee is an insurance corporation incorporated in Canada, the land in question must not form part of the property of the corporation excluded by regulation.

(5)  Where the transferee is a corporation of which at least 90 per cent of the issued shares of the capital stock to which are attached full voting rights are owned by an insurance corporation not resident in Canada described in paragraph a of subsection 2, the latter corporation must certify that the land in question will be considered by the transferee to be an investment made and held in favour of the business the insurance corporation carries on in Canada.

(6)  Where the transferee is a corporation not resident in Canada or a partnership, association or syndicate or any other group that is not resident in Canada solely by the fact that one or more corporations not resident in Canada described in paragraph a or b of subsection 2 are the owners of shares of the capital stock of one of such corporations or are members of such transferee, such corporation or corporations must certify, after reasonable inquiry, that the transferee would not be a person not resident in Canada were it not for the fact that such corporation or corporations are such owners or members.

1976, c. 23, s. 41; 1974, c. 70, s. 473.