I-3 - Taxation Act

Section 752.0.10.16.2 Disposition versions

2012-05-09

752.0.10.16.2. If this section applies because of section 752.0.10.16.1, the following rules apply:

(a)  for the purposes of this chapter, the fair market value of the particular property is deemed to be reduced by an amount equal to the fair market value of the non-qualifying security acquired by the qualified donee;

(b)  for the purposes of section 752.0.10.16, the following presumptions apply:

i.  if the non-qualifying security acquired by the qualified donee is a non-qualifying security of the particular person, it is deemed to be a non-qualifying security of the individual, and

ii.  the individual is deemed to have made, at the particular time referred to in section 752.0.10.16.1, a gift of the non-qualifying security acquired by the qualified donee, the fair market value of which may not exceed the amount by which the fair market value of the particular property determined without reference to paragraph a exceeds the fair market value of the particular property determined under paragraph a; and

(c)  paragraph b of section 752.0.10.16 does not apply in respect of the gift.

2012, c. 8, s. 120.