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I-3 - Taxation Act

Section 726.19
Disposition versions

Full text
726.19. (Repealed).
1987, c. 67, s. 142; 1990, c. 59, s. 271; 1994, c. 22, s. 252; 1996, c. 39, s. 190; 1997, c. 3, s. 71; 2003, c. 2, s. 204; 2007, c. 12, s. 82; 2015, c. 21, s. 257; 2017, c. 29, s. 109.
726.19. Despite any other provision of this Act, a trust described in subparagraph a of the first paragraph and the second paragraph of section 653 or in subparagraph a.1 of that first paragraph, other than an alter ego trust or a joint spousal trust, may, in computing its taxable income for its taxation year that includes the day determined in respect of the trust under subparagraph a or a.1 of the first paragraph of section 653, as the case may be, deduct under this Title an amount equal to the least of
(a)  the amount, if any, by which the eligible taxable capital gains, within the meaning of section 668.4, of the trust for that year exceed, at the end of the taxation year in which the spouse died, the amount, if any, by which the aggregate of all amounts each of which is the amount determined under subparagraph ii of subparagraph b of the first paragraph of section 726.6 in respect of the spouse for the year or for a preceding taxation year ending after 31 December 1984, the amount deducted by the spouse under subparagraph iii of paragraph c of the first paragraph of section 28 for his taxation year 1985 and the spouse’s cumulative net investment loss at the end of the year exceeds the aggregate of the amounts determined in respect of the spouse for the year or a preceding taxation year ending after 31 December 1984 under subparagraph i of subparagraph b of the first paragraph of section 726.6;
(b)  the amount that would be determined in respect of the trust for the year under paragraph b of section 28 in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified farm properties disposed of by it after 31 December 1984, qualified small business corporation shares disposed of by it after 17 June 1987 and qualified fishing properties disposed of by it after 1 May 2006; and
(c)  subject to the second paragraph, the amount by which the amount determined by the formula in subparagraph a of the first paragraph of section 726.7 in respect of the spouse for the taxation year in which that spouse died exceeds the amount deducted under this Title for that taxation year by that spouse.
Where the trust’s taxation year includes 28 February 2000 or 17 October 2000 or begins after 28 February 2000 and ends before 17 October 2000, the amount determined under subparagraph c of the first paragraph is deemed to be equal to the product obtained when the amount that would be determined under that subparagraph but for this paragraph is multiplied by the quotient obtained when the fraction in paragraphs a to d of section 231.0.1 that applies to the trust for the year is divided by the fraction provided for the purposes of section 231 in respect of the spouse for the taxation year in which that spouse died.
1987, c. 67, s. 142; 1990, c. 59, s. 271; 1994, c. 22, s. 252; 1996, c. 39, s. 190; 1997, c. 3, s. 71; 2003, c. 2, s. 204; 2007, c. 12, s. 82; 2015, c. 21, s. 257.
726.19. Notwithstanding any other provision of this Act, a trust described in subparagraph a of the first paragraph and in the second paragraph of section 653 or in subparagraph a.1 of the said first paragraph, other than a trust that has elected under section 656.4, an alter ego trust or a joint spousal trust, may, in computing its taxable income for its taxation year that includes the day determined in respect of the trust under subparagraph a or a.1 of the first paragraph of section 653, as the case may be, deduct under this Title an amount equal to the least of
(a)  the amount, if any, by which the eligible taxable capital gains, within the meaning of section 668.4, of the trust for that year exceed, at the end of the taxation year in which the spouse died, the amount, if any, by which the aggregate of all amounts each of which is the amount determined under subparagraph ii of subparagraph b of the first paragraph of section 726.6 in respect of the spouse for the year or for a preceding taxation year ending after 31 December 1984, the amount deducted by the spouse under subparagraph iii of paragraph c of the first paragraph of section 28 for his taxation year 1985 and the spouse’s cumulative net investment loss at the end of the year exceeds the aggregate of the amounts determined in respect of the spouse for the year or a preceding taxation year ending after 31 December 1984 under subparagraph i of subparagraph b of the first paragraph of section 726.6;
(b)  the amount that would be determined in respect of the trust for the year under paragraph b of section 28 in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified farm properties disposed of by it after 31 December 1984, qualified small business corporation shares disposed of by it after 17 June 1987 and qualified fishing properties disposed of by it after 1 May 2006; and
(c)  subject to the second paragraph, the amount by which the amount determined by the formula in subparagraph a of the first paragraph of section 726.7 in respect of the spouse for the taxation year in which that spouse died exceeds the amount deducted under this Title for that taxation year by that spouse.
Where the trust’s taxation year includes 28 February 2000 or 17 October 2000 or begins after 28 February 2000 and ends before 17 October 2000, the amount determined under subparagraph c of the first paragraph is deemed to be equal to the product obtained when the amount that would be determined under that subparagraph but for this paragraph is multiplied by the quotient obtained when the fraction in paragraphs a to d of section 231.0.1 that applies to the trust for the year is divided by the fraction provided for the purposes of section 231 in respect of the spouse for the taxation year in which that spouse died.
1987, c. 67, s. 142; 1990, c. 59, s. 271; 1994, c. 22, s. 252; 1996, c. 39, s. 190; 1997, c. 3, s. 71; 2003, c. 2, s. 204; 2007, c. 12, s. 82.
726.19. Notwithstanding any other provision of this Act, a trust described in subparagraph a of the first paragraph and in the second paragraph of section 653 or in subparagraph a.1 of the said first paragraph, other than a trust that has elected under section 656.4, an alter ego trust or a joint spousal trust, may, in computing its taxable income for its taxation year that includes the day determined in respect of the trust under subparagraph a or a.1 of the first paragraph of section 653, as the case may be, deduct under this Title an amount equal to the least of
(a)  the amount, if any, by which the eligible taxable capital gains, within the meaning of section 668.4, of the trust for that year exceed, at the end of the taxation year in which the spouse died, the amount, if any, by which the aggregate of all amounts each of which is the amount determined under subparagraph ii of subparagraph b of the first paragraph of section 726.6 in respect of the spouse for the year or for a preceding taxation year ending after 31 December 1984, the amount deducted by the spouse under subparagraph iii of paragraph c of the first paragraph of section 28 for his taxation year 1985 and the spouse’s cumulative net investment loss at the end of the year exceeds the aggregate of the amounts determined in respect of the spouse for the year or a preceding taxation year ending after 31 December 1984 under subparagraph i of subparagraph b of the first paragraph of section 726.6;
(b)  the amount that would be determined in respect of the trust for the year under paragraph b of section 28 in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified farm properties disposed of by it after 31 December 1984 and qualified small business corporation shares disposed of by it after 17 June 1987; and
(c)  subject to the second paragraph, the amount by which the amount determined by the formula in subparagraph a of the first paragraph of section 726.7 in respect of the spouse for the taxation year in which that spouse died exceeds the amount deducted under this Title for that taxation year by that spouse.
Where the trust’s taxation year includes 28 February 2000 or 17 October 2000 or begins after 28 February 2000 and ends before 17 October 2000, the amount determined under subparagraph c of the first paragraph is deemed to be equal to the product obtained when the amount that would be determined under that subparagraph but for this paragraph is multiplied by the quotient obtained when the fraction in paragraphs a to d of section 231.0.1 that applies to the trust for the year is divided by the fraction provided for the purposes of section 231 in respect of the spouse for the taxation year in which that spouse died.
1987, c. 67, s. 142; 1990, c. 59, s. 271; 1994, c. 22, s. 252; 1996, c. 39, s. 190; 1997, c. 3, s. 71; 2003, c. 2, s. 204.
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