I-3 - Taxation Act

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21.0.9. For the purposes of this chapter, the following rules apply:
(a)  in determining whether persons are affiliated with each other
i.  except for the purposes of paragraph b of the definition of “subsidiary” in section 21.0.5, section 21.0.3 applies without reference to the definition of “controlled” in section 21.0.1,
ii.  individuals connected by blood relationship, marriage or adoption are deemed to be affiliated with one another, and
iii.  if, at any time as part of a series of transactions or events a person acquires equity of a corporation, partnership or trust, and it can reasonably be concluded that one of the reasons for the acquisition, or for making any agreement or undertaking in respect of the acquisition, is to cause a condition in paragraph a or b of section 21.0.7 or subparagraph i of paragraph a or b of section 21.0.8 regarding affiliation to be satisfied at a particular time, the condition is deemed not to be satisfied at the particular time;
(b)  in determining whether a particular person becomes at a particular time a majority-interest beneficiary, or a particular group of persons becomes at a particular time a majority-interest group of beneficiaries, of a trust, the fair market value of each person’s equity of the trust is to be determined at and immediately before the particular time
i.  without reference to the portion of that fair market value that is attributable to property acquired if it can reasonably be concluded that one of the reasons for the acquisition is to cause paragraph b of section 21.0.6, or any provision that applies by reference to a trust being subject to a loss restriction event at any time, not to apply,
ii.  without reference to the portion of that fair market value that is attributable to a change in the fair market value of all or part of any equity of the trust if it can reasonably be concluded that one of the reasons for the change is to cause paragraph b of section 21.0.6, or any provision that applies by reference to a trust being subject to a loss restriction event at any time, not to apply, and
iii.  as if each specified right held immediately before the particular time by the particular person, or by a member of the particular group of persons, in respect of the trust is at that time exercised if it can reasonably be concluded that one of the reasons for the acquisition of the right is to cause paragraph b of section 21.0.6, or any provision that applies by reference to a trust being subject to a loss restriction event at any time, not to apply; and
(c)  if, at any time as part of a series of transactions or events a person acquires a security (within the meaning assigned by the first paragraph of section 1129.70) and it can reasonably be concluded that one of the reasons for the acquisition, or for making any agreement or undertaking in respect of the acquisition, is to cause a condition in subparagraph v of paragraph b of the definition of “investment fund” in section 21.0.5 or in subparagraph 4 of subparagraph vi of that paragraph b to be satisfied at a particular time in respect of a trust, the condition is deemed not to be satisfied at the particular time in respect of the trust.
2017, c. 12017, c. 1, s. 72; 2017, c. 292017, c. 29, s. 25.
21.0.9. For the purposes of this chapter, the following rules apply:
(a)  in determining whether persons are affiliated with each other
i.  except for the purposes of paragraph b of the definition of “subsidiary” in section 21.0.5, section 21.0.3 applies without reference to the definition of “controlled” in section 21.0.1,
ii.  individuals connected by blood relationship, marriage or adoption are deemed to be affiliated with one another, and
iii.  if, at any time as part of a series of transactions or events a person acquires equity of a corporation, partnership or trust, and it can reasonably be concluded that one of the reasons for the acquisition, or for making any agreement or undertaking in respect of the acquisition, is to cause a condition in paragraph a or b of section 21.0.7 or subparagraph i of paragraph a or b of section 21.0.8 regarding affiliation to be satisfied at a particular time, the condition is deemed not to be satisfied at the particular time; and
(b)  in determining whether a particular person becomes at a particular time a majority-interest beneficiary, or a particular group of persons becomes at a particular time a majority-interest group of beneficiaries, of a trust, the fair market value of each person’s equity of the trust is to be determined at and immediately before the particular time
i.  without reference to the portion of that fair market value that is attributable to property acquired if it can reasonably be concluded that one of the reasons for the acquisition is to cause paragraph b of section 21.0.6, or any provision that applies by reference to a trust being subject to a loss restriction event at any time, not to apply,
ii.  without reference to the portion of that fair market value that is attributable to a change in the fair market value of all or part of any equity of the trust if it can reasonably be concluded that one of the reasons for the change is to cause paragraph b of section 21.0.6, or any provision that applies by reference to a trust being subject to a loss restriction event at any time, not to apply, and
iii.  as if each specified right held immediately before the particular time by the particular person, or by a member of the particular group of persons, in respect of the trust is at that time exercised if it can reasonably be concluded that one of the reasons for the acquisition of the right is to cause paragraph b of section 21.0.6, or any provision that applies by reference to a trust being subject to a loss restriction event at any time, not to apply.
2017, c. 12017, c. 1, s. 72.