C-6.1 - Act constituting Capital régional et coopératif Desjardins

Section 21 Disposition versions

2001-07-01

21. For the purposes of the first paragraph of section 20, an entity is associated with another entity at any time where those entities are, at that time, corporations associated with each other in accordance with the provisions of Chapter IX of Title II of Book I of Part I of the Taxation Act (chapter I-3) and, for that purpose,

(1)  an entity that is an individual carrying on an enterprise is deemed to carry on the enterprise through a corporation all of whose shares of the capital stock carrying voting rights belong to the individual at that time;

(2)  an entity that is a partnership is deemed to be a corporation all of whose shares of the capital stock carrying voting rights belong to each member of the partnership, at that time, in the proportion represented by the ratio between the share of the member in the income or loss of the partnership for the fiscal period ending on or before that time and the income or loss of the partnership for that fiscal period, assuming that if the income and loss of the partnership for that fiscal period are nil, the income of the partnership for that fiscal period is equal to $1,000,000;

(3)  an entity that is a trust, within the meaning of section 1 of the Taxation Act, is deemed to be a corporation all of whose shares of the capital stock carrying voting rights belong to each beneficiary of the income, at that time, in the proportion represented by the ratio between the share of the beneficiary in the income or loss of the trust for its fiscal period ending on or before that time and the income or loss of the trust for that fiscal period, assuming, if the income and loss of the trust for that fiscal period are nil, that the income of the trust for that fiscal period is equal to $1,000,000.

2001, c. 36, s. 21.