I-3 - Taxation Act

Section 726.6.4 Disposition versions

2017-12-07

726.6.4. (Repealed).

2007, c. 12, s. 75; 2017, c. 29, s. 100.

2007-11-07

726.6.4. For the purposes of subparagraph a.0.1 of the first paragraph of section 726.6, at any time, a property owned at that time by an individual, the individual’s spouse or a partnership, an interest in which is an interest in a family fishing partnership of the individual or of the individual’s spouse will not be considered to have been used in the course of carrying on a fishing business in Canada, unless

(a)  throughout the period of at least 24 months preceding that time, the property or a property for which the property was substituted was owned by any one or more of

i.  the individual or the spouse, a child or the father or mother of the individual,

ii.  a partnership, an interest in which is an interest in a family fishing partnership of the individual or of the individual’s spouse,

iii.  if the individual is a personal trust, the individual from whom the trust acquired the property or the spouse, a child or the father or mother of the individual, or

iv.  a personal trust from which the individual or a child or the father or mother of the individual acquired the property; and

(b)  either

i.  in at least two years while the property was owned by one or more persons referred to in subparagraph a, the property was used principally in a fishing business carried on in Canada in which an individual referred to in subparagraph a, or if the individual is a personal trust, a beneficiary under the trust, was actively engaged on a regular and continuous basis, and the gross revenue of a person referred to in subparagraph a, in this subparagraph i referred to as the “operator”, from such a business for the period during which the property was owned by a person referred to in subparagraph a exceeded the income of the operator from all other sources for that period, or

ii.  throughout a period of at least 24 months while the property was owned by one or more persons or partnerships referred to in subparagraph a, the property was used by a corporation described in subparagraph 4 of subparagraph i of subparagraph a.0.1 of the first paragraph of section 726.6 or by a partnership described in subparagraph 5 of that subparagraph i in a fishing business in which an individual described in any of subparagraphs 1 to 3 of that subparagraph i was actively engaged on a regular and continuous basis.

If, at any time, a qualified fishing property is encumbered with a real servitude, the incorporeal capital property that results from the establishment of that servitude is considered, at that time, to have been used in the course of carrying on a fishing business in Canada only if the qualified fishing property so encumbered satisfies the conditions set out in subparagraphs a and b of the first paragraph.

2007, c. 12, s. 75.