I-3, r. 1 - Regulation respecting the Taxation Act

Section 104r3 Disposition versions

2012-09-01

104R3. Where a vessel owned by a taxpayer on 1 January 1966, or constructed pursuant to a construction contract entered into by the taxpayer prior to that date without the vessel being completed by such date, is disposed of by the taxpayer prior to 1974, section 94 of the Act and Title IV of Book III of Part I of the Act does not apply to the proceeds of disposition

(a)  if an amount at least equal to the proceeds of disposition is used by the taxpayer, before the month of May 1974 and during the taxation year in which the taxpayer disposed of the vessel or within 4 months following the end of that taxation year, under the conditions provided for in subparagraph i of paragraph a of subsection 15 of section 13 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), either for replacement of the vessel or to incur any conversion cost with respect to another vessel owned by the taxpayer; or

(b)  if, under the conditions provided for in subparagraph ii of paragraph a of subsection 15 of section 13 of the Income Tax Act, the taxpayer deposits on or before the day on which the taxpayer’s fiscal return is to be filed for the taxation year of disposal of the vessel, either an amount at least equal to the tax that would, but for this paragraph, be payable by the taxpayer under Part I of the Act in respect of the proceeds of disposition, or satisfactory security therefor to guarantee that the proceeds of disposition will be used before 1975 for replacement of the vessel.

s. 104R3; O.C. 1981-80, s. 104R3; R.R.Q., 1981, c. I-3, r. 1, s. 104R3; O.C. 35-96, s. 5; O.C. 1707-97, s. 16; O.C. 134-2009, s. 1.