I-0.4 - Mining Tax Act

Section 4.1 Disposition versions

2011-06-06

4.1. For the purposes of this Act, an operator that is a legal person is associated, in a fiscal year, with one or more entities that are legal persons if, at a particular time in that fiscal year, they are associated with each other within the meaning of Chapter IX of Title II of Book I of Part I of the Taxation Act (chapter I-3).

In addition, for the purpose of determining if an operator is associated with an entity in a fiscal year, the first paragraph is to be applied taking into account the following rules:

(1)  an individual is deemed to be a legal person all of the voting shares of the capital stock of which are owned by the individual at the particular time;

(2)  a partnership is deemed to be a legal person whose fiscal year corresponds to that of the partnership and all of the voting shares of the capital stock of which are owned by each member of the partnership, at the particular time, in the proportion that the member’s share of the income or loss of the partnership for the fiscal year that includes the particular time is of the income or loss of the partnership for the fiscal year, assuming, if the income and loss of the partnership for that fiscal year are nil, that the income of the partnership for the fiscal year is equal to $1,000,000; and

(3)  a trust is deemed to be a legal person all of the voting shares of the capital stock of which,

(a)  in the case of a testamentary trust under which one or more beneficiaries are entitled to receive all of the income of the trust that arose before the date of death of one or the last surviving of those beneficiaries (in this subparagraph referred to as the “distribution date”) and under which no other person can, before the distribution date, receive or otherwise obtain the enjoyment of any of the income or capital of the trust,

i.  are owned at the particular time by such a beneficiary, if that beneficiary’s share of the income or capital of the trust depends on the exercise by any person of, or the failure by any person to exercise, a power to appoint, and if the particular time occurs before the distribution date, or

ii.  are owned at the particular time by such a beneficiary in a proportion that the fair market value of the beneficial interest in the trust of the beneficiary is of the fair market value of the beneficial interests in the trust of all the beneficiaries, if subparagraph i does not apply and the particular time occurs before the distribution date;

(b)  if a beneficiary’s share of the accumulating income or capital of the trust depends on the exercise by any person of, or the failure by any person to exercise, a power to appoint, are owned at the particular time by the beneficiary, unless subparagraph a applies and the particular time occurs before the distribution date,

(c)  in any case in which subparagraph b does not apply, are owned at the particular time by the beneficiary in a proportion that the fair market value of the beneficial interest in the trust of the beneficiary is of the fair market value of all beneficial interests in the trust, unless subparagraph a applies and the particular time occurs before the distribution date, and

(d)  in the case of a trust referred to in section 467 of the Taxation Act, are owned at the particular time by the person referred to in that section from whom property of the trust or property for which property of the trust was substituted was directly or indirectly received.

2011, c. 6, s. 18.