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I-3 - Taxation Act
Section 999.1
Disposition versions
999.1. Where, at any time (in this section referred to as “that time”), a person that is a corporation or, if that time is after 12 September 2013, a trust becomes or ceases to be exempt from tax under this Part on its taxable income, the following rules apply:
(a) the taxation year of the person—where the person is either a corporation and subsection 10 of section 149 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) does not apply to the corporation in respect of that time, or a trust—that would otherwise include that time is deemed to end immediately before that time and a new taxation year of the person is deemed to begin at that time and, if the person is a corporation, to end at the time at which its taxation year (determined for the purposes of the Income Tax Act) that includes that time, ends;
(a.0.1) (paragraph repealed);
(a.1) for the purpose of computing the person’s income for its first taxation year ending after that time, the person is deemed to have deducted under Chapter III of Title III of Book III and Chapters II and III of Title V of Book VI in computing its income for its taxation year ending immediately before that time, the greatest amount that could have been claimed or deducted for that year as a reserve under those provisions;
(b) the person is deemed to dispose, at the time (in this section referred to as the “disposition time”) that is immediately before the time that is immediately before that time, of each property that was owned by it immediately before that time for an amount equal to its fair market value at that time, and to reacquire the property at that time at a cost equal to that fair market value; and
(c) (paragraph repealed);
(d) (paragraph repealed);
(e) for the purposes of sections 222 to 230.0.0.6, 330, 359 to 418.36, 419 to 419.4, 419.6, 600.1, 600.2, 727 to 737 and 772.2 to 772.13, the person is deemed to be a new corporation or a new trust, as the case may be, the first taxation year of which began at that time;
(f) (paragraph repealed).
999.1. Where at any time (in this section referred to as “that time”), a person that is a corporation or, if that time is after 12 September 2013, a trust becomes or ceases to be exempt from tax under this Part on its taxable income, otherwise than by reason of paragraph k of section 998, the following rules apply:
(a) the taxation year of the person—where the person is either a corporation and subsection 10 of section 149 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) does not apply to the corporation in respect of that time, or a trust—that would otherwise include that time is deemed to end immediately before that time and a new taxation year of the person is deemed to begin at that time and, if the person is a corporation, to end at the time at which its taxation year (determined for the purposes of the Income Tax Act) that includes that time, ends;
(a.0.1) (paragraph repealed);
(a.1) for the purpose of computing the person’s income for its first taxation year ending after that time, the person is deemed to have deducted under Chapter III of Title III of Book III and Chapters II and III of Title V of Book VI in computing its income for its taxation year ending immediately before that time, the greatest amount that could have been claimed or deducted for that year as a reserve under those provisions;
(b) the person is deemed to dispose, at the time (in this section referred to as the “disposition time”) that is immediately before the time that is immediately before that time, of each property that was owned by it immediately before that time for an amount equal to its fair market value at that time, and to reacquire the property at that time at a cost equal to that fair market value;
(c) (paragraph repealed);
(d) (paragraph repealed);
(e) for the purposes of sections 222 to 230.0.0.6, 330, 359 to 418.36, 419 to 419.4, 419.6, 600.1, 600.2, 727 to 737 and 772.2 to 772.13, the person is deemed to be a new corporation or a new trust, as the case may be, the first taxation year of which began at that time; and
(f) where, immediately before the disposition time, the person’s eligible incorporeal capital amount in respect of a business exceeds the aggregate of 75% of the fair market value of the incorporeal capital property in respect of that business and the amount otherwise deducted under paragraph b of section 130 in computing the person’s income from that business for the taxation year that ended immediately before that time, the excess is to be deducted under that paragraph b in computing the person’s income from that business for that taxation year.
999.1. Where, at any time, in this section referred to as “that time”, a corporation becomes or ceases to be exempt from tax under this Part on its taxable income, otherwise than by reason of paragraph k of section 998, the following rules apply:
(a) if subsection 10 of section 149 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) does not apply to the corporation in respect of that time, the taxation year of the corporation that would otherwise include that time is deemed to end immediately before that time and a new taxation year of the corporation is deemed to begin at that time and to end at the time at which the corporation’s taxation year (determined for the purposes of the Income Tax Act) that includes that time, ends;
(a.0.1) (paragraph repealed);
(a.1) for the purpose of computing the corporation’s income for its first taxation year ending after that time, the corporation is deemed to have deducted under Chapter III of Title III of Book III and Chapters II and III of Title V of Book VI in computing its income for its taxation year ending immediately before that time, the greatest amount that could have been claimed or deducted for that year as a reserve under those provisions;
(b) the corporation is deemed to dispose, at the time, in this section referred to as the “disposition time”, that is immediately before the time that is immediately before that time, of each property that was owned by it immediately before that time for an amount equal to its fair market value at that time, and to reacquire the property at that time at a cost equal to that fair market value;
(c) (paragraph repealed);
(d) (paragraph repealed);
(e) for the purposes of sections 222 to 230.0.0.6, 330, 359 to 418.36, 419 to 419.4, 419.6, 600.1, 600.2, 727 to 737 and 772.2 to 772.13, the corporation is deemed to be a new corporation the first taxation year of which began at that time; and
(f) where, immediately before the disposition time, the corporation’s eligible incorporeal capital amount in respect of a business exceeds the aggregate of 75% of the fair market value of the incorporeal capital property in respect of that business and the amount otherwise deducted under paragraph b of section 130 in computing the corporation’s income from that business for the taxation year that ended immediately before that time, the excess shall be deducted under that paragraph b in computing the corporation’s income from that business for that taxation year.
999.1. Where, at any time, in this section referred to as “that time”, a corporation becomes or ceases to be exempt from tax under this Part on its taxable income, otherwise than by reason of paragraph k of section 998, the following rules apply:
(a) the taxation year of the corporation that would otherwise include that time is deemed to end immediately before that time and a new taxation year of the corporation is deemed to commence at that time;
(a.0.1) for the purpose of determining the corporation’s fiscal period after that time, the corporation is deemed not to have established a fiscal period before that time;
(a.1) for the purpose of computing the corporation’s income for its first taxation year ending after that time, the corporation is deemed to have deducted under Chapter III of Title III of Book III and Chapters II and III of Title V of Book VI in computing its income for its taxation year ending immediately before that time, the greatest amount that could have been claimed or deducted for that year as a reserve under those provisions;
(b) the corporation is deemed to dispose, at the time, in this section referred to as the “disposition time”, that is immediately before the time that is immediately before that time, of each property that was owned by it immediately before that time for an amount equal to its fair market value at that time, and to reacquire the property at that time at a cost equal to that fair market value;
(c) (paragraph repealed);
(d) (paragraph repealed);
(e) for the purposes of sections 222 to 230.0.0.6, 330, 359 to 418.36, 419 to 419.4, 419.6, 600.1, 600.2, 727 to 737 and 772.2 to 772.13, the corporation is deemed to be a new corporation the first taxation year of which began at that time; and
(f) where, immediately before the disposition time, the corporation’s eligible incorporeal capital amount in respect of a business exceeds the aggregate of 75% of the fair market value of the incorporeal capital property in respect of that business and the amount otherwise deducted under paragraph b of section 130 in computing the corporation’s income from that business for the taxation year that ended immediately before that time, the excess shall be deducted under that paragraph b in computing the corporation’s income from that business for that taxation year.
