I-3 - Taxation Act

Section 7.0.3 Disposition versions

2009-05-15

7.0.3. Where a business is carried on, throughout the period of time that began at the beginning of a particular fiscal period referred to in the second paragraph of section 7, of the business, that includes a particular day, and ended at the end of the calendar year in which the fiscal period began, by an individual, otherwise than as a member of a partnership, or by an individual as a member of a partnership if, throughout that period of time, each member of the partnership is an individual and the partnership is not a member of another partnership, and where the individual makes, after 19 December 2006, a valid election under subsection 4 of section 249.1 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) in respect of the fiscal period or a previous fiscal period, subparagraph b of the second paragraph of section 7 does not apply to the particular fiscal period and the particular fiscal period must end at the end of the period that includes the particular day and that is a fiscal period of the business for the purposes of the Income Tax Act.

Chapter V.2 applies in relation to an election made under subsection 4 of section 249.1 of the Income Tax Act in respect of a fiscal period referred to in the second paragraph of section 7 or in relation to an election made under this section before 20 December 2006.

1997, c. 31, s. 4; 2009, c. 5, s. 14.

2006-03-01

7.0.3. Subparagraph b of the second paragraph of section 7 does not apply to a fiscal period of a business carried on, throughout the period of time that began at the beginning of the fiscal period and ended at the end of the calendar year in which the fiscal period began, by an individual, otherwise than as a member of a partnership, or by an individual as a member of a partnership if, throughout that period of time, each member of the partnership is an individual and the partnership is not a member of another partnership, where

(a)  in the case of a business carried on by an individual otherwise than as a member of a partnership, or as a member of a partnership no member of which is a testamentary trust, an election in prescribed form to have subparagraph b of the second paragraph of section 7 not apply is filed with the Minister by the individual on or before the individual’s filing-due date, and with the individual’s fiscal return under this Part, for the taxation year that includes the first day of the first fiscal period of the business that begins after 31 December 1994; and

(b)  in the case of a business carried on by an individual as a member of a partnership a member of which is a testamentary trust, an election in prescribed form to have subparagraph b of the second paragraph of section 7 not apply is filed with the Minister by the individual on or before the earliest of the filing-due dates of the members of the partnership for a taxation year that includes the first day of the first fiscal period of the business that begins after 31 December 1994.

1997, c. 31, s. 4.