I-3 - Taxation Act

Section 1175.36.1 Disposition versions

2007-11-07

1175.36.1. Despite section 1175.36, if an operator transfers, in a calendar year, to a person or partnership an immovable subject to tax that forms part of a system of the operator, the following rules apply:

(a)  in the case where the person or partnership is also an operator and

i.  the immovable subject to tax is transferred by the operator in a fiscal period that ends in the calendar year, in this paragraph referred to as the “particular fiscal period”, the amount that is the excess amount, as it would have been shown in the operator’s financial statements had the operator still owned the immovable subject to tax at the end of the particular fiscal period, that is the amount by which the cost of the immovable subject to tax exceeds the accumulated depreciation at the end of the fiscal period that precedes the particular fiscal period, must be added to the net value of the assets forming part of the operator’s system for the operator’s last fiscal period that ends in the calendar year, unless the immovable subject to tax forms part of a system of the person or partnership and is shown in the person’s or partnership’s financial statements for the person’s or partnership’s last fiscal period that ends in the calendar year, at the end of which the person or partnership owns the immovable, or

ii.  the immovable subject to tax forms part of a system of the person or partnership and is shown both in the person’s or partnership’s financial statements for the person’s or partnership’s last fiscal period that ends in the calendar year, at the end of which the person or partnership owns the immovable, and in the transferor’s financial statements for the transferor’s last fiscal period that ends in the calendar year, the amount that is the amount by which the cost of the immovable subject to tax exceeds the accumulated depreciation, as shown in the person’s or partnership’s financial statements for that fiscal period, may be subtracted from the net value of the assets forming part of the person’s or partnership’s system for the person’s or partnership’s last fiscal period that ends in the calendar year; and

(b)  in the case where the person or partnership is not an operator and the immovable subject to tax is transferred by the operator in a fiscal period that ends in the calendar year, in this paragraph referred to as the “particular fiscal period”, the amount that is the proportion of the excess amount, as it would have been shown in the operator’s financial statements had the operator still owned the immovable subject to tax at the end of the particular fiscal period, that is the amount by which the cost of the immovable subject to tax exceeds the accumulated depreciation at the end of the fiscal period that precedes the particular fiscal period, that the number of days in the particular fiscal period in which the operator owned the immovable subject to tax is of the number of days in the particular fiscal period, must be added to the net value of the assets of the operator for the operator’s last fiscal period that ends in the calendar year.

2007, c. 12, s. 301.