I-3 - Taxation Act

Section 418.6.1 Disposition versions

2006-03-01

418.6.1. The first amount referred to in subparagraph ii of paragraph b of section 418.6 is the amount by which the aggregate of all amounts that would be determined under the second paragraph of section 418.21, immediately before the time, in this section and in section 418.6.2 referred to as the “relevant time”, when such proceeds of disposition became receivable, in respect of the taxpayer and an original owner of the property, or of any other property acquired by the taxpayer with the property in circumstances in which section 418.21 applied and in respect of which the proceeds of disposition became receivable by the taxpayer at the relevant time, exceeds the amount described in the second paragraph, if

(a)  amounts that became receivable at or after the relevant time were not taken into account;

(b)  each designation made under subparagraph 1 of subparagraph ii of subparagraph b of the second paragraph of section 418.19 in respect of an amount that became receivable before the relevant time were made before the relevant time;

(c)  the second paragraph of section 418.21 were read without reference to “10% of”; and

(d)  no reduction under section 485.8 at or after the relevant time were taken into account.

The amount referred to in the first paragraph as being described in the second paragraph is the aggregate of

(a)  all amounts that would be determined under the second paragraph of section 418.21 at the relevant time in respect of the taxpayer and an original owner of the property, or of any other property acquired by the taxpayer with the property in circumstances in which section 418.21 applied and in respect of which the proceeds of disposition became receivable by the taxpayer at the relevant time, if

i.  amounts that became receivable after the relevant time were not taken into account,

ii.  each designation made under subparagraph 1 of subparagraph ii of subparagraph b of the second paragraph of section 418.19 in respect of an amount that became receivable at or before the relevant time were made before the relevant time,

iii.  the second paragraph of section 418.21 were read without reference to “10% of”, and

iv.  no reduction under section 485.8 at or after the relevant time were taken into account; and

(b)  such portion of the amount determined under this section as was otherwise applied to reduce the amount otherwise determined under paragraph b of section 418.6.

1995, c. 49, s. 108; 1996, c. 39, s. 115.