I-3 - Taxation Act

Section 1129.0.10.9 Disposition versions

2007-11-07

1129.0.10.9. Every taxpayer who is a member of a particular partnership at the end of a particular fiscal period of the partnership shall pay, for the taxation year in which the particular fiscal period ends, a tax equal to the amount determined in the second paragraph, where, at any particular time in the particular fiscal period and after 23 February 1998, the particular partnership begins to use for commercial purposes, or disposes of without having used for commercial purposes, a property

(a)  that was acquired by the particular partnership 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 particular partnership did not deal at arm’s length at the time at which the particular partnership 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 taxpayer would have been required to pay to the Minister under this section for a taxation year preceding the taxation year in which the particular fiscal period ends, in relation to the property, if the taxpayer’s share of the income or loss of the particular partnership for the fiscal period in which the preceding taxation year ends and the particular partnership’s income or loss for that fiscal period had been the same as those for the particular fiscal period:

(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 particular partnership, 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; 2006, c. 36, s. 224; 2007, c. 12, s. 233.

2006-12-06

1129.0.10.9. Every taxpayer who is a member of a particular partnership at the end of a particular fiscal period of the partnership shall pay, for the taxation year in which the particular fiscal period ends, a tax equal to the amount determined in the second paragraph, where, at any particular time in the particular fiscal period and after 23 February 1998, the particular partnership begins to use for commercial purposes, or disposes of without having used for commercial purposes, a property

(a)  that was acquired by the particular partnership 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 particular partnership did not deal at arm’s length at the time at which the particular partnership 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 taxpayer would have been required to pay to the Minister under this section for a taxation year preceding the taxation year in which the particular fiscal period ends, in relation to the property, if the taxpayer’s share of the income or loss of the particular partnership for the fiscal period in which the preceding taxation year ends and the particular partnership’s income or loss for that fiscal period had been the same as those for the particular fiscal period:

(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 particular partnership, 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; 2006, c. 36, s. 224.

2006-03-01

1129.0.10.9. Every taxpayer who is a member of a particular partnership at the end of a particular fiscal period of the partnership shall pay, for the taxation year in which the particular fiscal period ends, a tax equal to the amount determined in the second paragraph, where, at any particular time in the particular fiscal period and after 23 February 1998, the particular partnership begins to use for commercial purposes, or disposes of without having used for commercial purposes, a property

(a)  that was acquired by the particular partnership 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 particular partnership did not deal at arm’s length at the time at which the particular partnership 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 taxpayer would have been required to pay to the Minister under this section for a taxation year preceding the taxation year in which the particular fiscal period ends, in relation to the property, if the taxpayer’s share of the income or loss of the particular partnership for the fiscal period in which the preceding taxation year ends had been the same as the taxpayer’s share for the particular fiscal period:

(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 particular partnership, 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.