I-3 - Taxation Act

Section 110.1 Disposition versions

2019-06-19

110.1. (Repealed).

1978, c. 26, s. 26; 1982, c. 5, s. 32; 1990, c. 59, s. 63; 1993, c. 16, s. 67; 2001, c. 7, s. 17; 2003, c. 2, s. 43; 2005, c. 1, s. 50; 2009, c. 5, s. 57; 2009, c. 15, s. 54; 2019, c. 14, s. 78.

2009-06-04

110.1. (1)  Where, in a taxation year, a taxpayer disposes of an incorporeal capital property, in this section referred to as “former property”, the taxpayer acquires, in a taxation year, an incorporeal capital property that is a replacement property for the taxpayer’s former property and the taxpayer makes a valid election under subsection 6 of section 14 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) after 19 December 2006 in respect of the former property, that part of the amount that would otherwise be included in the aggregate determined under subparagraph b of the second paragraph of section 107 in respect of a business, if that subparagraph were read without reference to “3/4 of”, as has been used by the taxpayer to acquire the replacement property, before the end of the first taxation year following the taxation year in which the former property was disposed of by the taxpayer or, if it is later, before the end of the 12-month period following the taxation year in which the former property was disposed of by the taxpayer, shall, to the extent of 3/4 thereof, be included in that aggregate for the purpose of computing the eligible incorporeal capital amount of the taxpayer in respect of the business, only from the day on which the replacement property was acquired by the taxpayer or, if it is later, on the day on which the former property was disposed of by the taxpayer.

(2)  For the purposes of this section, an incorporeal capital property of a taxpayer is a replacement property for a former property of a taxpayer where

(a)  it is reasonable to conclude that the incorporeal capital property was acquired by the taxpayer to replace the former property;

(a.1)  the incorporeal capital property was acquired by the taxpayer for a use that is the same as or similar to the use to which the taxpayer put the former property;

(b)  the incorporeal capital property was acquired by the taxpayer for the purpose of gaining or producing income from a business similar to the business in which the former property was used; and

(c)  the former property was used by the taxpayer in a business carried on in Canada and the incorporeal capital property was acquired for use by the taxpayer in a business carried on by the taxpayer in Canada.

(3)  Chapter V.2 of Title II of Book I applies in relation to an election made under subsection 6 of section 14 of the Income Tax Act or in relation to an election made under subsection 1 before 20 December 2006.

1978, c. 26, s. 26; 1982, c. 5, s. 32; 1990, c. 59, s. 63; 1993, c. 16, s. 67; 2001, c. 7, s. 17; 2003, c. 2, s. 43; 2005, c. 1, s. 50; 2009, c. 5, s. 57; 2009, c. 15, s. 54.

2009-05-15

110.1. (1)  Where, in a taxation year, a taxpayer disposes of an incorporeal capital property, in this section referred to as “former property”, the taxpayer acquires, in a taxation year, an incorporeal capital property that is a replacement property for the taxpayer’s former property and the taxpayer makes a valid election under subsection 6 of section 14 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) after 19 December 2006 in respect of the former property, that part of the amount that would otherwise be included in the aggregate determined under subparagraph b of the second paragraph of section 107 in respect of a business, if that subparagraph were read without reference to “3/4 of”, as has been used by the taxpayer before the end of the first taxation year after the end of the taxation year in which the former property was disposed of by the taxpayer to acquire the replacement property shall, to the extent of 3/4 thereof, be included in that aggregate for the purpose of computing the eligible incorporeal capital amount of the taxpayer in respect of the business, only from the later of the time the replacement property was acquired by the taxpayer and the time the former property was disposed of by the taxpayer.

(2)  For the purposes of this section, an incorporeal capital property of a taxpayer is a replacement property for a former property of a taxpayer where

(a)  it is reasonable to conclude that the incorporeal capital property was acquired by the taxpayer to replace the former property;

(a.1)  the incorporeal capital property was acquired by the taxpayer for a use that is the same as or similar to the use to which the taxpayer put the former property;

(b)  the incorporeal capital property was acquired by the taxpayer for the purpose of gaining or producing income from a business similar to the business in which the former property was used; and

(c)  the former property was used by the taxpayer in a business carried on in Canada and the incorporeal capital property was acquired for use by the taxpayer in a business carried on by the taxpayer in Canada.

(3)  Chapter V.2 of Title II of Book I applies in relation to an election made under subsection 6 of section 14 of the Income Tax Act or in relation to an election made under subsection 1 before 20 December 2006.

1978, c. 26, s. 26; 1982, c. 5, s. 32; 1990, c. 59, s. 63; 1993, c. 16, s. 67; 2001, c. 7, s. 17; 2003, c. 2, s. 43; 2005, c. 1, s. 50; 2009, c. 5, s. 57.

2006-03-01

110.1. (1)  Where, in a taxation year, a taxpayer disposes of an incorporeal capital property, in this section referred to as “former property”, and the taxpayer so elects, under this section, in the taxpayer’s fiscal return for the taxation year in which the taxpayer acquires an incorporeal capital property that is a replacement property for the taxpayer’s former property, that part of the amount that would otherwise be included in the aggregate determined under subparagraph b of the second paragraph of section 107 in respect of a business, if that subparagraph were read without reference to “3/4 of”, as has been used by the taxpayer before the end of the first taxation year after the end of the taxation year in which the former property was disposed of by the taxpayer to acquire the replacement property shall, to the extent of 3/4 thereof, be included in that aggregate for the purpose of computing the eligible incorporeal capital amount of the taxpayer in respect of the business, only from the later of the time the replacement property was acquired by the taxpayer and the time the former property was disposed of by the taxpayer.

(2)  For the purposes of this section, an incorporeal capital property of a taxpayer is a replacement property for a former property of a taxpayer where

(a)  it is reasonable to conclude that the incorporeal capital property was acquired by the taxpayer to replace the former property;

(a.1)  the incorporeal capital property was acquired by the taxpayer for a use that is the same as or similar to the use to which the taxpayer put the former property;

(b)  the incorporeal capital property was acquired by the taxpayer for the purpose of gaining or producing income from a business similar to the business in which the former property was used; and

(c)  the former property was used by the taxpayer in a business carried on in Canada and the incorporeal capital property was acquired for use by the taxpayer in a business carried on by the taxpayer in Canada.

1978, c. 26, s. 26; 1982, c. 5, s. 32; 1990, c. 59, s. 63; 1993, c. 16, s. 67; 2001, c. 7, s. 17; 2003, c. 2, s. 43; 2005, c. 1, s. 50.