I-3 - Taxation Act

Section 851.38 Disposition versions

2006-03-01

851.38. In this Title,

“expenditure” means an outlay or expense or the cost or capital cost of a property;

“limited partner” has the meaning that would be assigned by section 613.6 if that section were read without reference to “if the member’s partnership interest is not an exempt interest, within the meaning assigned by section 613.7, at that time and”;

“limited-recourse amount” means the unpaid principal amount of any indebtedness for which recourse is limited, either immediately or in the future and either absolutely or contingently;

“taxpayer” includes a partnership;

“tax shelter investment” means

(a)  a property that is a tax shelter for the purposes of section 1079.1; or

(b)  a taxpayer’s interest in a partnership where

i.  an interest in the taxpayer is a tax shelter investment and the taxpayer’s partnership interest would be a tax shelter investment if

(1)  this Act were read without reference to this paragraph and to “, having regard to statements or representations made or proposed to be made in connection with the property,” in the definition of “tax shelter” in the first paragraph of section 1079.1, and

(2)  the references, in subparagraphs a and b of the second paragraph of section 1079.1, to “represented” and to “is represented” were read as “that can reasonably be expected” and “can reasonably be expected”, respectively,

ii.  another interest in the partnership is a tax shelter investment, or

iii.  the taxpayer’s interest in the partnership entitles the taxpayer, directly or indirectly, to a share of the income or loss of a particular partnership where

(1)  another taxpayer holding a partnership interest is entitled, directly or indirectly, to a share of the income or loss of the particular partnership, and

(2)  that other taxpayer’s partnership interest is a tax shelter investment.

2001, c. 7, s. 132.