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

Section 130r11.0.5 Disposition versions

2023-03-15

130R11.0.5. For the purposes of this Title and Schedule B and for the purpose of determining whether an eligible person or partnership is associated, within the meaning of Chapter IX of Title II of Book I of Part I of the Act, in a taxation year with another eligible person or partnership, the following rules apply:

(a)  if the eligible person or partnership is a partnership,

i.  the partnership is deemed, for the year, to be a corporation having a capital stock of a single class of voting shares divided into 100 issued and outstanding shares,

ii.  each member of the partnership is deemed to own a number of shares of the capital stock of the deemed corporation described in subparagraph i equal either to the agreed proportion, determined in respect of the member for the last fiscal period of the partnership, of the 100 shares referred to in subparagraph i or, if no such agreed proportion has been determined in its respect, to the proportion of 100 that the fair market value, at that time, of the member’s interest in the partnership is of the fair market value, at that time, of the aggregate of the members’ interests in the partnership, and

iii.  the partnership’s fiscal period is deemed to be the taxation year of the deemed corporation referred to in subparagraph i; and

(b)  if the eligible person or partnership is an individual, other than a trust, who carries on a business or has acquired immediate expensing property, the following rules apply:

i.  the individual, in respect of that business or property, is deemed to be a corporation that is controlled by the individual, and

ii.  the corporation’s taxation year is deemed to be the same as the individual’s taxation year.

S.Q. 2023, c. 2, s. 98.