I-3 - Taxation Act

Section 997 Disposition versions

2017-02-08

997. Where the main object of a club, society or association contemplated in section 996 is to provide dining, recreational or sporting facilities for its members, a trust is deemed, after 31 December 1971, to have been created and the following rules apply:

(a)  its property is deemed to be the property of the trust;

(b)  if it is a corporation, it is deemed to be the trustee having control of the trust property;

(c)  if it is not a corporation, its officers are deemed to be the trustees having control of the trust property;

(d)  the trust shall pay the tax under this Part on its taxable income for each taxation year;

(e)  the income and the taxable income of the trust are computed for each taxation year on the assumption that it had no income or losses other than income and losses from property and taxable capital gains and allowable capital losses from disposition of property other than property used exclusively and directly for the main objects of the club, society or association;

(f)  an additional amount of $2,000 may be deducted in computing its taxable income for each taxation year but no deduction is permitted under sections 738 to 749;

(g)  the provisions of Title XII of Book III, except sections 646 and 647, do not apply to such trust.

1972, c. 23, s. 729; 1977, c. 26, s. 106; 1986, c. 15, s. 169; 1986, c. 19, s. 182; 1989, c. 5, s. 195; 1997, c. 3, s. 51; 2017, c. 1, s. 260.

2006-03-01

997. Where the main object of a club, society or association contemplated in section 996 is to provide dining, recreational or sporting facilities for its members, an inter vivos trust is deemed, after 31 December 1971, to have been created and the following rules apply:

(a)  its property is deemed to be the property of the trust;

(b)  if it is a corporation, it is deemed to be the trustee having control of the trust property;

(c)  if it is not a corporation, its officers are deemed to be the trustees having control of the trust property;

(d)  the trust shall pay the tax under this Part on its taxable income for each taxation year;

(e)  the income and the taxable income of the trust are computed for each taxation year on the assumption that it had no income or losses other than income and losses from property and taxable capital gains and allowable capital losses from disposition of property other than property used exclusively and directly for the main objects of the club, society or association;

(f)  an additional amount of $2,000 may be deducted in computing its taxable income for each taxation year but no deduction is permitted under sections 738 to 749;

(g)  the provisions of Title XII of Book III, except sections 646 and 647, do not apply to such trust.

1972, c. 23, s. 729; 1977, c. 26, s. 106; 1986, c. 15, s. 169; 1986, c. 19, s. 182; 1989, c. 5, s. 195; 1997, c. 3, s. 51.