I-3 - Taxation Act

Section 1086.28 Disposition versions

2017-12-07

1086.28. Where, in a particular taxation year preceding the taxation year 2015, an individual has disposed of or exchanged a security of a qualifying person in respect of which the individual made a valid election under paragraph b of section 58.0.1, as it read before being repealed, and the individual makes an election, in the manner and within the time specified in the second paragraph, for the particular year in relation to the security, the following rules apply:

(a)  the percentage specified in section 725.2 in relation to the benefit deemed to be received by the individual under section 49 for the particular year in respect of the security is to be replaced by

i.  75%, where the security has been disposed of or exchanged after 30 March 2004,

ii.  87.5%, where the security has been disposed of or exchanged after 12 June 2003 and before 31 March 2004, or

iii.  100%, where the security has been disposed of or exchanged before 13 June 2003, or acquired under a right provided for in an agreement referred to in section 48 and entered into after 13 March 2008, from a qualifying person that is a qualified corporation for a particular calendar year including the time at which the individual acquired the security;

(b)  for the purposes of Part I, the individual is deemed to have realized a capital gain for the particular year equal to the lesser of the amount of the benefit that the individual is deemed to have received in the particular year under section 49 in respect of the security and the capital loss determined under Part I and derived from the disposition of the security;

(c)  the individual is liable to pay a tax for the particular year equal to 50% of the proceeds of disposition of the security;

(d)  where the time limit provided for in paragraph a of subsection 2 of section 1010 has expired in respect of the particular year, the Minister may, for the purposes of Part I, make a reassessment and redetermine the tax, interest and penalties for the particular year in order to take the election into account; and

(e)  despite section 1010 and as the circumstances require, the Minister shall redetermine the individual’s net capital loss for the particular year and reassess any taxation year in which an amount has been deducted under section 729.

An individual makes the election referred to in the first paragraph for a particular taxation year by filing with the Minister the prescribed form containing prescribed information

(a)  on or before the individual’s filing-due date for the taxation year 2010 where the security has been disposed of or exchanged before 1 January 2010; or

(b)  on or before the individual’s filing-due date for the particular year in which the security has been disposed of or exchanged, in any other case.

2011, c. 34, s. 113; I.N. 2018-06-05.

2011-12-09

1086.28. Where, in a particular taxation year preceding the taxation year 2015, an individual has disposed of or exchanged a security of a qualifying person in respect of which the individual made a valid election under paragraph b of section 58.0.1, as it read before being repealed, and the individual makes an election, in the manner and within the time specified in the second paragraph, for the particular year in relation to the security, the following rules apply:

(a)  the percentage specified in section 725.2 in relation to the benefit deemed to be received by the individual under section 49 for the particular year in respect of the security is to be replaced by

i.  75%, where the security has been disposed of or exchanged after 30 March 2004,

ii.  87.5%, where the security has been disposed of or exchanged after 12 June 2003 and before 31 March 2004, or

iii.  100%, where the security has been disposed of or exchanged before 13 June 2003, or acquired under a right provided for in an agreement referred to in section 48 and entered into after 13 March 2008, from a qualifying person that is a qualified corporation for a particular calendar year including the time at which the individual acquired the security;

(b)  for the purposes of Part I, the individual is deemed to have realized a capital gain for the particular year equal to the lesser of the amount of the benefit that the individual is deemed to have received in the particular year under section 49 in respect of the security and the capital loss determined under Part I and derived from the disposition of the security;

(c)  the individual is liable to pay a tax for the particular year equal to 50% of the proceeds of disposition of the security;

(d)  where the time limit provided for in paragraph a of subsection 2 of section 1010 has expired in respect of the particular year, the Minister may, for the purposes of Part I, make a new assessment and redetermine the tax, interest and penalties for the particular year in order to take the election into account; and

(e)  despite section 1010 and as the circumstances require, the Minister shall redetermine the individual’s net capital loss for the particular year and reassess any taxation year in which an amount has been deducted under section 729.

An individual makes the election referred to in the first paragraph for a particular taxation year by filing with the Minister the prescribed form containing prescribed information

(a)  on or before the individual’s filing-due date for the taxation year 2010 where the security has been disposed of or exchanged before 1 January 2010; or

(b)  on or before the individual’s filing-due date for the particular year in which the security has been disposed of or exchanged, in any other case.

2011, c. 34, s. 113.