I-3 - Taxation Act

Section 597.0.15 Disposition versions

2015-12-04

597.0.15. Where, at or before a specified time in a trust’s taxation year (in this section referred to as the “trust’s year”), there is an electing contributor who is both a tax-liable taxpayer in respect of the trust and a joint contributor in respect of a contribution to the trust, the following rules apply:

(a)  each person who is both a joint contributor in respect of the contribution and a tax-liable taxpayer in respect of the trust has, in respect of the contribution, solidarily, the rights and obligations under Book IX of each other person (in this section referred to as the “specified person”) who is, at or before the specified time, a joint contributor in respect of the contribution and a tax-liable taxpayer in respect of the trust, for the specified person’s taxation year in which the trust’s year ends, and the Tax Administration Act (chapter A-6.002) applies in respect of those rights and obligations; and

(b)  the maximum amount recoverable under subparagraph a at a particular time from the person in respect of the contribution and a taxation year, of another person who is the specified person, in which the trust’s year ends is the amount determined by the formula

A - B - C.

In the formula in the first paragraph,

(a)  A is the aggregate of the amounts payable by the specified person under this Part for the specified person’s taxation year in which the trust’s year ends;

(b)  B is the amount that would be determined in accordance with subparagraph a if the aggregate of the amounts payable by the specified person under this Part for the specified person’s taxation year in which the trust’s year ends were computed without reference to the contribution; and

(c)  C is the amount recovered before the particular time from the specified person, and any other joint contributor in respect of the trust and the contribution, in connection with the liability of the specified person in respect of the contribution.

2015, c. 36, s. 29.