I-3 - Taxation Act

Section 106 Disposition versions

2019-06-19

106. (Repealed).

1972, c. 23, s. 95; 1973, c. 17, s. 10; 1974, c. 18, s. 5; 1996, c. 39, s. 34; 1997, c. 3, s. 71; 2005, c. 1, s. 40; 2019, c. 14, s. 78.

2006-03-01

106. (1)  The incorporeal capital amount of a taxpayer in respect of a business is the amount payable or disbursed, as a result of a transaction occurring after 1971, on account of capital to gain income from the business.

(2)  The incorporeal capital amount shall not however include an amount payable or disbursed:

(a)  in respect of which any amount is or would be, but for the provisions of this Part limiting the quantum of a deduction, deductible otherwise than under paragraph b of section 130 in computing his income from the business, or in respect of which any amount is, under a provision of this Part other than section 129, not deductible in computing such income;

(b)  to gain income that is exempt income;

(c)  that is the cost of, or any part of the cost of corporeal property of the taxpayer, his incorporeal property that is depreciable property, his property in respect of which a deduction other than that provided in paragraph b of section 130 is permitted in computing his income from the business, or would be so permitted if his income from the business were sufficient for that purpose, or of an interest in, or right to acquire such property;

(d)  to a creditor of the taxpayer as payment of a debt or as redemption, cancellation or purchase of any bond or debenture;

(e)  to a person as a shareholder of the corporation where the taxpayer is a corporation; or

(f)  that is the cost or any part of the cost of an interest in a trust or partnership, a share, bond, debenture, hypothecary claim, mortgage, note, bill or other similar property, or an interest in, or a right to acquire, any such property.

1972, c. 23, s. 95; 1973, c. 17, s. 10; 1974, c. 18, s. 5; 1996, c. 39, s. 34; 1997, c. 3, s. 71; 2005, c. 1, s. 40.