I-4 - Act respecting the application of the Taxation Act

Section 41.1 Disposition versions

2019-06-19

41.1. Where after 1971 a taxpayer has acquired a particular government right referred to in section 36 from a person with whom the taxpayer was not dealing at arm’s length or pursuant to an agreement with a person with whom the taxpayer was not dealing at arm’s length, if under the terms of the agreement that person allowed the right to expire so that the taxpayer could acquire a substantially similar right from the authority referred to in section 38 that had granted the right to that person, and an actual amount subsequently becomes receivable by the taxpayer as consideration for the disposition by the taxpayer of, or for the taxpayer allowing the expiry of, such right or any other government right acquired by the taxpayer for the purpose of effecting the continuation, without interruption, of rights that are substantially similar to the rights that the taxpayer previously had under the particular government right, for the purposes of the Taxation Act (chapter I-3), the amount that has so become receivable by the taxpayer is deemed to be the amount that would have been determined under section 36 if that person and the taxpayer had at all times been the same person.

1978, c. 26, s. 222; 2019, c. 14, s. 474.

1978-12-22

41.1. Where after 1971 a taxpayer has acquired a particular governmental right referred to in section 37 from a person with whom he was not dealing at arm’s length or pursuant to an agreement with a person with whom he was not dealing at arm’s length, if under the terms of the agreement that person allowed the right to expire so that the taxpayer could acquire a substantially similar right from the authority referred to in section 38 that had issued the right to that person, and an amount referred to in section 36 subsequently becomes receivable by the taxpayer as consideration for the disposition by him of, or for his allowing the expiry of, such right or any other governmental right acquired by the taxpayer for the purpose of effecting the continuation without interruption, of rights that are substantially similar to the rights that he previously had under the particular governmental right, for the purposes of sections 105 to 110.1 of the Taxation Act (chapter I-3), such amount is deemed to be the amount that would have been determined under the said section 36 if that person and the taxpayer had at all times been the same person.

1978, c. 26, s. 222.