I-3 - Taxation Act

Section 613.5 Disposition versions

2006-03-01

613.5. For the purposes of sections 613.2 to 613.4, where a taxpayer has acquired his partnership interest at any time from a transferor other than the partnership, the adjusted cost base to the taxpayer of that interest shall be computed as if the cost to him of the interest were the lesser of

(a)  his cost otherwise determined, and

(b)  the greater of the adjusted cost base of that interest to the transferor immediately before that time, and nil.

Notwithstanding the foregoing, where the adjusted cost base to the transferor cannot be determined, it is deemed to be equal to the aggregate of the amounts determined in respect of the taxpayer under paragraphs a and b of section 613.3 immediately after that time.

1988, c. 4, s. 40; 1997, c. 3, s. 71.