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

Section 851.22.11r10 Disposition versions

2012-09-01

851.22.11R10. The residual portion of a taxpayer’s gain or loss that is from a disposition of a specified debt obligation to which section 851.22.11 of the Act applies is to be allocated to a particular taxation year of the taxpayer to the extent that it has not been allocated to a preceding taxation year, if

(a)  at any time in the particular taxation year the taxpayer ceases to carry on all or substantially all of a business, otherwise than as a result of a merger to which section 545 of the Act applies, a winding-up to which sections 556 to 564.1 and 565 of the Act apply or a transfer of the business to which any of sections 633, 832.3 and 832.9 of the Act apply;

(b)  the disposition occurred before the time referred to in subparagraph a; and

(c)  the specified debt obligation was property used in the business.

For the purposes of the first paragraph, a taxpayer who is not resident in Canada is considered to cease to carry on all or substantially all of a business if the taxpayer ceases to carry on, or ceases to carry on in Canada, all or substantially all of the part of the business that was carried on in Canada.

O.C. 390-2012, s. 64.