I-3 - Taxation Act

Section 217.9.1 Disposition versions

2006-03-01

217.9.1. Where an individual carries on a business in a taxation year, the individual dies in the year and after the end of a fiscal period of the business that ends in the year, another fiscal period of the business ends because of the individual’s death, in this section referred to as the “short period”, and the individual’s legal representative elects that this section apply in computing the individual’s income for the year or files a separate fiscal return under section 1003 in respect of the individual’s business, notwithstanding section 217.9, there shall be included in computing the individual’s income for the year from the business, the amount determined by the formula

(A − B) × (C / D).

In the formula provided for in the first paragraph,

(a)  A is the total of the individual’s income from the business for fiscal periods, other than the short period, of the business that end in the year;

(b)  B is the lesser of

i.  the aggregate of all amounts each of which is an amount included in the total determined under subparagraph a in respect of the business that is deemed to be a taxable capital gain for the purposes of Title VI.5 of Book IV, and

ii.  the aggregate of all amounts deducted under Title VI.5 of Book IV in computing the individual’s taxable income for the year;

(c)  C is the number of days in the short period; and

(d)  D is the number of days in fiscal periods of the business, other than the short period, that end in the year.

2000, c. 5, s. 53.