I-3 - Taxation Act

Section 1129.0.10.8 Disposition versions

2007-11-07

1129.0.10.8. A person, in this section referred to as the “purchaser”, shall pay for a particular taxation year a tax equal to the amount determined in the second paragraph, where, at any particular time in the year and after 23 February 1998, the purchaser begins to use for commercial purposes, or disposes of without having used for commercial purposes, a property

(a)  that was acquired by the purchaser in circumstances described in section 1129.0.10.7 or that is another property that incorporates a property acquired in such circumstances; and

(b)  that was first acquired, or that incorporates a property that was first acquired, by a person or partnership, in this section referred to as the “original user”, with which the purchaser did not deal at arm’s length at the time at which the purchaser acquired the property, in the original user’s taxation year or fiscal period that includes the particular time, on the assumption that the original user had such a taxation year or fiscal period, or in any of the original user’s preceding taxation years or fiscal periods.

The amount to which the first paragraph refers is the amount by which the lesser of the following amounts exceeds any amount of tax that the purchaser has paid to the Minister under this section for a taxation year preceding the particular taxation year, in relation to the property:

(a)  the amount

i.  included in the amount that the original user is deemed to have paid to the Minister under any of Divisions II, II.3 and II.3.0.1 of Chapter III.1 of Title III of Book IX of Part I, in relation to the property, or

ii.  where the original user is a partnership, that can reasonably be considered to be included in the amount that a taxpayer is deemed to have paid to the Minister under any of sections 1029.8, 1029.8.11 and 1029.8.16.1.5, in relation to the property; and

(b)  the product obtained by multiplying the percentage that was applied by the original user in determining the amount referred to in subparagraph a by

i.  if the property or the other property is disposed of to a person who deals at arm’s length with the purchaser, the proceeds of disposition of that property, or

ii.  in any other case, the fair market value of the particular property or the other property at the time it begins to be used for commercial purposes or is disposed of.

2001, c. 53, s. 252; 2007, c. 12, s. 232.

2006-03-01

1129.0.10.8. A person, in this section referred to as the "purchaser", shall pay for a particular taxation year a tax equal to the amount determined in the second paragraph, where, at any particular time in the year and after 23 February 1998, the purchaser begins to use for commercial purposes, or disposes of without having used for commercial purposes, a property

(a)  that was acquired by the purchaser in circumstances described in section 1129.0.10.7 or that is another property that incorporates a property acquired in such circumstances; and

(b)  that was first acquired, or that incorporates a property that was first acquired, by a person or partnership, in this section referred to as the "original user", with which the purchaser did not deal at arm’s length at the time at which the purchaser acquired the property, in the original user’s taxation year or fiscal period that includes the particular time, on the assumption that the original user had such a taxation year or fiscal period, or in any of the original user’s preceding taxation years or fiscal periods.

The amount to which the first paragraph refers is the amount by which the lesser of the following amounts exceeds any amount of tax that the purchaser has paid to the Minister under this section for a taxation year preceding the particular taxation year, in relation to the property:

(a)  the amount

i.  included in the amount that the original user is deemed to have paid to the Minister under Division II or II.3 of Chapter III.1 of Title III of Book IX of Part I, in relation to the property, or

ii.  where the original user is a partnership, that can reasonably be considered to be included in the amount that a taxpayer is deemed to have paid to the Minister under section 1029.8 or 1029.8.11, in relation to the property; and

(b)  the product obtained by multiplying the percentage that was applied by the original user in determining the amount referred to in subparagraph a by

i.  if the property or the other property is disposed of to a person who deals at arm’s length with the purchaser, the proceeds of disposition of that property, or

ii.  in any other case, the fair market value of the particular property or the other property at the time it begins to be used for commercial purposes or is disposed of.

2001, c. 53, s. 252.