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I-3 - Taxation Act
Section 248
Disposition versions
248. For the purposes of this Title, the disposition of property includes, except as expressly otherwise provided,
(a) any transaction or event entitling to proceeds of disposition of the property;
(b) any transaction or event by which,
i. where the property is a share, bond, debenture, bill, hypothecary claim, mortgage, agreement of sale or other similar property, or an interest in it, the property is in whole or in part redeemed, acquired or cancelled,
ii. where the property is a debt or any other right to receive an amount, the debt or other right is settled or cancelled,
iii. where the property is a share, the share is converted because of an amalgamation or merger,
iv. where the property is an option to acquire or dispose of property, the option expires, and
v. a trust, that can reasonably be considered to act as agent or mandatary for all the beneficiaries under the trust with respect to all dealings with all of the trust’s property, ceases to act as agent or mandatary for a beneficiary under the trust in respect of any dealing with any of the trust’s property, unless the trust is described in any of subparagraphs a to d of the third paragraph of section 647;
(b.1) where the property is an interest in a life insurance policy, a disposition within the meaning of paragraph a of section 966;
(c) any transfer of the property to a trust or, where the property is property of a trust, any transfer of the property to any beneficiary under the trust, except as provided by subparagraphs b and g of the second paragraph; and
(d) where the property is, or is part of, a taxpayer’s capital interest in a trust, a payment after 31 December 1999 to the taxpayer from the trust that can reasonably be considered to have been made because of the taxpayer’s capital interest in the trust, except as provided by subparagraphs d and e of the second paragraph.
The disposition of property does not include
(a) any transfer of the property as a consequence of which there is no change in the beneficial ownership of the property, except where the transfer is
i. from a person or a partnership to a trust for the benefit of the person or the partnership,
ii. from a trust to a beneficiary under the trust, or
iii. from one trust maintained for the benefit of one or more beneficiaries under the trust to another trust maintained for the benefit of the same beneficiaries;
(b) any transfer of the property as a consequence of which there is no change in the beneficial ownership of the property, where
i. the transferor and the transferee are trusts that are, at the time of the transfer, resident in Canada,
ii. (subparagraph repealed);
iii. the transferee does not receive the property as consideration for the transferee’s right as a beneficiary under the transferor trust,
iv. the transferee holds no property immediately before the transfer, other than property the cost of which is not included, for the purposes of this Part, in computing a balance of undeducted outlays, expenses or other amounts in respect of the transferee,
v. the transferee is not a transferee who, in relation to the transfer, makes a valid election under subparagraph v of paragraph f of the definition of “disposition” in subsection 1 of section 248 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) after 19 December 2006 in order to avoid the application of that paragraph f;
vi. if the transferor is an amateur athlete trust, a cemetery care trust, an employee trust, a trust referred to in section 851.25, a segregated fund trust referred to in section 851.2, a trust described in paragraph c.4 of section 998 or a trust governed by an eligible funeral arrangement, a profit sharing plan, a registered education savings plan, a registered disability savings plan, a registered supplementary unemployment benefit plan or a tax-free savings account, the transferee is the same type of trust, and
vii. the transfer results, or is part of a series of transactions or events that results, in the transferor ceasing to exist and, immediately before the time of the transfer or the beginning of that series, as the case may be, the transferee never held any property or held only property having a nominal value;
(c) (subparagraph repealed);
(d) where the property is part of a capital interest of a taxpayer in a trust, other than a personal trust or a trust prescribed for the purposes of section 688, that is described by reference to units issued by the trust, a payment after 31 December 1999 from the trust in respect of the capital interest, where the number of units in the trust that are owned by the taxpayer is not reduced because of the payment;
(e) where the property is a taxpayer’s capital interest in a trust, a payment to the taxpayer after 31 December 1999 in respect of the capital interest to the extent that the payment
i. is out of the income of the trust, determined without reference to paragraph a of section 657 and section 657.1, for a taxation year or out of the capital gains of the trust for the year, if the payment was made in the year or the right to the payment was acquired by the taxpayer in the year, or
ii. is in respect of an amount designated in respect of the taxpayer by the trust under section 667;
(f) any transfer of the property for the purpose only of securing a debt or a loan, or any transfer by a creditor for the purpose only of returning property that has been used as security for a debt or a loan;
(g) any transfer of the property to a trust as a consequence of which there is no change in the beneficial ownership of the property, where the main purpose of the transfer is
i. to effect payment under a debt or loan,
ii. to provide assurance that an absolute or contingent obligation of the transferor will be satisfied, or
iii. to facilitate either the provision of compensation or the enforcement of a penalty, in the event that an absolute or contingent obligation of the transferor is not satisfied;
(h) any issue of a bond, debenture, bill, hypothecary claim or mortgage;
(i) any issue by a corporation of a share of its capital stock, or any other transaction that, but for this subparagraph, would be a disposition by a corporation of a share of its capital stock;
(i.1) any redemption, acquisition or cancellation of a share of the capital stock of a corporation (in this subparagraph referred to as the “issuing corporation”) or of a right to acquire such a share, which share or which right being referred to in this subparagraph as the “security”, held by another corporation (in this subparagraph referred to as the “disposing corporation”), if
i. the redemption, acquisition or cancellation occurs as part of a merger or combination of two or more corporations, including the issuing corporation and the disposing corporation, to form a new corporation,
ii. the merger or combination
(1) is an amalgamation, within the meaning of subsections 1 and 2 of section 544, to which section 550.9 does not apply,
(2) is an amalgamation, within the meaning of subsections 1 and 2 of section 544, to which section 550.9 applies, if the issuing corporation and the disposing corporation are described in section 550.9 as the parent and the subsidiary, respectively,
(3) is a foreign merger, within the meaning of section 555.0.1, or
(4) would be a foreign merger, within the meaning of section 555.0.1, if subparagraph ii of paragraph c of that section were read without reference to “resident in a country other than Canada”, and
iii. either
(1) the disposing corporation receives no consideration for the security, or
(2) in the case where the merger or combination is described in subparagraph 3 or 4 of subparagraph ii, the disposing corporation receives no consideration for the security other than property that was, immediately before the merger or combination, owned by the issuing corporation and that, on the merger or combination, becomes property of the new corporation; and
(j) any transfer of a property governed by civil law which does not entail a change in the right of the person who has the full ownership thereof, although such property be subject to a servitude, or in the right of the usufructuary, the emphyteutic lessee, an institute in a substitution or a beneficiary in a trust.
Chapter V.2 of Title II of Book I applies in relation to an election made under subparagraph v of paragraph f of the definition of “disposition” in subsection 1 of section 248 of the Income Tax Act or in relation to an election made under subparagraph v of subparagraph b of the second paragraph before 20 December 2006.
248. For the purposes of this Title, the disposition of property includes, except as expressly otherwise provided,
(a) any transaction or event entitling to proceeds of disposition of the property;
(b) any transaction or event by which,
i. where the property is a share, bond, debenture, bill, mortgage created under the jurisdiction of a province other than Québec, agreement of sale or other similar property, or an interest in it, the property is in whole or in part redeemed, acquired or cancelled,
ii. where the property is a debt or any other right to receive an amount, the debt or other right is settled or cancelled,
iii. where the property is a share, the share is converted because of an amalgamation or merger,
iv. where the property is an option to acquire or dispose of property, the option expires, and
v. a trust, that can reasonably be considered to act as agent or mandatary for all the beneficiaries under the trust with respect to all dealings with all of the trust’s property, ceases to act as agent or mandatary for a beneficiary under the trust in respect of any dealing with any of the trust’s property, unless the trust is described in any of subparagraphs a to d of the third paragraph of section 647;
(c) any transfer of the property to a trust or, where the property is property of a trust, any transfer of the property to any beneficiary under the trust, except as provided by subparagraphs b and g of the second paragraph; and
(d) where the property is, or is part of, a taxpayer’s capital interest in a trust, a payment after 31 December 1999 to the taxpayer from the trust that can reasonably be considered to have been made because of the taxpayer’s capital interest in the trust, except as provided by subparagraphs d and e of the second paragraph.
The disposition of property does not include
(a) any transfer of the property as a consequence of which there is no change in the beneficial ownership of the property, except where the transfer is
i. from a person or a partnership to a trust for the benefit of the person or the partnership,
ii. from a trust to a beneficiary under the trust, or
iii. from one trust maintained for the benefit of one or more beneficiaries under the trust to another trust maintained for the benefit of the same beneficiaries;
(b) any transfer of the property as a consequence of which there is no change in the beneficial ownership of the property, where
i. the transferor and the transferee are trusts that are, at the time of the transfer, resident in Canada,
ii. (subparagraph repealed);
iii. the transferee does not receive the property as consideration for the transferee’s right as a beneficiary under the transferor trust,
iv. the transferee holds no property immediately before the transfer, other than property the cost of which is not included, for the purposes of this Part, in computing a balance of undeducted outlays, expenses or other amounts in respect of the transferee,
v. the transferee is not a transferee who, in relation to the transfer, makes a valid election under subparagraph v of paragraph f of the definition of “disposition” in subsection 1 of section 248 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) after 19 December 2006 in order to avoid the application of that paragraph f;
vi. if the transferor is an amateur athlete trust, a cemetery care trust, an employee trust, a trust referred to in section 851.25, a segregated fund trust referred to in section 851.2, a trust described in paragraph c.4 of section 998 or a trust governed by an eligible funeral arrangement, a profit sharing plan, a registered education savings plan, a registered disability savings plan, a registered supplementary unemployment benefit plan or a tax-free savings account, the transferee is the same type of trust, and
vii. the transfer results, or is part of a series of transactions or events that results, in the transferor ceasing to exist and, immediately before the time of the transfer or the beginning of that series, as the case may be, the transferee never held any property or held only property having a nominal value;
(c) (subparagraph repealed);
(d) where the property is part of a capital interest of a taxpayer in a trust, other than a personal trust or a trust prescribed for the purposes of section 688, that is described by reference to units issued by the trust, a payment after 31 December 1999 from the trust in respect of the capital interest, where the number of units in the trust that are owned by the taxpayer is not reduced because of the payment;
(e) where the property is a taxpayer’s capital interest in a trust, a payment to the taxpayer after 31 December 1999 in respect of the capital interest to the extent that the payment
i. is out of the income of the trust, determined without reference to paragraph a of section 657 and section 657.1, for a taxation year or out of the capital gains of the trust for the year, if the payment was made in the year or the right to the payment was acquired by the taxpayer in the year, or
ii. is in respect of an amount designated in respect of the taxpayer by the trust under section 667;
(f) any transfer of the property for the purpose only of securing a debt or a loan, or any transfer by a creditor for the purpose only of returning property that has been used as security for a debt or a loan;
(g) any transfer of the property to a trust as a consequence of which there is no change in the beneficial ownership of the property, where the main purpose of the transfer is
i. to effect payment under a debt or loan,
ii. to provide assurance that an absolute or contingent obligation of the transferor will be satisfied, or
iii. to facilitate either the provision of compensation or the enforcement of a penalty, in the event that an absolute or contingent obligation of the transferor is not satisfied;
(h) any issue of a bond, debenture, bill, hypothecary claim or mortgage;
(i) any issue by a corporation of a share of its capital stock, or any other transaction that, but for this subparagraph, would be a disposition by a corporation of a share of its capital stock;
(i.1) any redemption, acquisition or cancellation of a share of the capital stock of a corporation (in this subparagraph referred to as the “issuing corporation”) or of a right to acquire such a share, which share or which right being referred to in this subparagraph as the “security”, held by another corporation (in this subparagraph referred to as the “disposing corporation”), if
i. the redemption, acquisition or cancellation occurs as part of a merger or combination of two or more corporations, including the issuing corporation and the disposing corporation, to form a new corporation,
ii. the merger or combination
(1) is an amalgamation, within the meaning of subsections 1 and 2 of section 544, to which section 550.9 does not apply,
(2) is an amalgamation, within the meaning of subsections 1 and 2 of section 544, to which section 550.9 applies, if the issuing corporation and the disposing corporation are described in section 550.9 as the parent and the subsidiary, respectively,
(3) is a foreign merger, within the meaning of section 555.0.1, or
(4) would be a foreign merger, within the meaning of section 555.0.1, if subparagraph ii of paragraph c of that section were read without reference to “resident in a country other than Canada”, and
iii. either
(1) the disposing corporation receives no consideration for the security, or
(2) in the case where the merger or combination is described in subparagraph 3 or 4 of subparagraph ii, the disposing corporation receives no consideration for the security other than property that was, immediately before the merger or combination, owned by the issuing corporation and that, on the merger or combination, becomes property of the new corporation; and
(j) any transfer of a property governed by civil law which does not entail a change in the right of the person who has the full ownership thereof, although such property be subject to a servitude, or in the right of the usufructuary, the emphyteutic lessee, an institute in a substitution or a beneficiary in a trust.
Chapter V.2 of Title II of Book I applies in relation to an election made under subparagraph v of paragraph f of the definition of “disposition” in subsection 1 of section 248 of the Income Tax Act or in relation to an election made under subparagraph v of subparagraph b of the second paragraph before 20 December 2006.
248. For the purposes of this Title, the disposition of property includes, except as expressly otherwise provided,
(a) any transaction or event entitling to proceeds of disposition of the property;
(b) any transaction or event by which,
i. where the property is a share, bond, debenture, bill, mortgage created under the jurisdiction of a province other than Québec, agreement of sale or other similar property, or an interest in it, the property is in whole or in part redeemed, acquired or cancelled,
ii. where the property is a debt or any other right to receive an amount, the debt or other right is settled or cancelled,
iii. where the property is a share, the share is converted because of an amalgamation or merger,
iv. where the property is an option to acquire or dispose of property, the option expires, and
v. a trust, that can reasonably be considered to act as agent or mandatary for all the beneficiaries under the trust with respect to all dealings with all of the trust’s property, ceases to act as agent or mandatary for a beneficiary under the trust in respect of any dealing with any of the trust’s property, unless the trust is described in any of subparagraphs a to d of the third paragraph of section 647;
(c) any transfer of the property to a trust or, where the property is property of a trust, any transfer of the property to any beneficiary under the trust, except as provided by subparagraphs b and g of the second paragraph; and
(d) where the property is, or is part of, a taxpayer’s capital interest in a trust, a payment after 31 December 1999 to the taxpayer from the trust that can reasonably be considered to have been made because of the taxpayer’s capital interest in the trust, except as provided by subparagraphs d and e of the second paragraph.
The disposition of property does not include
(a) any transfer of the property as a consequence of which there is no change in the beneficial ownership of the property, except where the transfer is
i. from a person or a partnership to a trust for the benefit of the person or the partnership,
ii. from a trust to a beneficiary under the trust, or
iii. from one trust maintained for the benefit of one or more beneficiaries under the trust to another trust maintained for the benefit of the same beneficiaries;
(b) any transfer of the property as a consequence of which there is no change in the beneficial ownership of the property, where
i. the transferor and the transferee are trusts that are, at the time of the transfer, resident in Canada,
ii. (subparagraph repealed);
iii. the transferee does not receive the property as consideration for the transferee’s right as a beneficiary under the transferor trust,
iv. the transferee holds no property immediately before the transfer, other than property the cost of which is not included, for the purposes of this Part, in computing a balance of undeducted outlays, expenses or other amounts in respect of the transferee,
v. the transferee is not a transferee who, in relation to the transfer, makes a valid election under subparagraph v of paragraph f of the definition of “disposition” in subsection 1 of section 248 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) after 19 December 2006 in order to avoid the application of that paragraph f;
vi. if the transferor is an amateur athlete trust, a cemetery care trust, an employee trust, a trust referred to in section 851.25, a segregated fund trust referred to in section 851.2, a trust referred to in paragraph c.4 of section 998 or a trust governed by an eligible funeral arrangement, a profit sharing plan, a registered education savings plan or a registered supplementary unemployment benefit plan, the transferee is the same type of trust, and
vii. the transfer results, or is part of a series of transactions or events that results, in the transferor ceasing to exist and, immediately before the time of the transfer or the beginning of that series, as the case may be, the transferee never held any property or held only property having a nominal value;
(c) (subparagraph repealed);
(d) where the property is part of a capital interest of a taxpayer in a trust, other than a personal trust or a trust prescribed for the purposes of section 688, that is described by reference to units issued by the trust, a payment after 31 December 1999 from the trust in respect of the capital interest, where the number of units in the trust that are owned by the taxpayer is not reduced because of the payment;
(e) where the property is a taxpayer’s capital interest in a trust, a payment to the taxpayer after 31 December 1999 in respect of the capital interest to the extent that the payment
i. is out of the income of the trust, determined without reference to paragraph a of section 657 and section 657.1, for a taxation year or out of the capital gains of the trust for the year, if the payment was made in the year or the right to the payment was acquired by the taxpayer in the year, or
ii. is in respect of an amount designated in respect of the taxpayer by the trust under section 667;
(f) any transfer of the property for the purpose only of securing a debt or a loan, or any transfer by a creditor for the purpose only of returning property that has been used as security for a debt or a loan;
(g) any transfer of the property to a trust as a consequence of which there is no change in the beneficial ownership of the property, where the main purpose of the transfer is
i. to effect payment under a debt or loan,
ii. to provide assurance that an absolute or contingent obligation of the transferor will be satisfied, or
iii. to facilitate either the provision of compensation or the enforcement of a penalty, in the event that an absolute or contingent obligation of the transferor is not satisfied;
(h) any issue of a bond, debenture, bill, hypothecary claim or mortgage;
(i) any issue by a corporation of a share of its capital stock, or any other transaction that, but for this subparagraph, would be a disposition by a corporation of a share of its capital stock; and
(i.1) any redemption, acquisition or cancellation of a share of the capital stock of a corporation (in this subparagraph referred to as the “issuing corporation”) or of a right to acquire such a share, which share or which right being referred to in this subparagraph as the “security”, held by another corporation (in this subparagraph referred to as the “disposing corporation”), if
i. the redemption, acquisition or cancellation occurs as part of a merger or combination of two or more corporations, including the issuing corporation and the disposing corporation, to form a new corporation,
ii. the merger or combination
(1) is an amalgamation, within the meaning of subsections 1 and 2 of section 544, to which section 550.9 does not apply,
(2) is an amalgamation, within the meaning of subsections 1 and 2 of section 544, to which section 550.9 applies, if the issuing corporation and the disposing corporation are described in section 550.9 as the parent and the subsidiary, respectively,
(3) is a foreign merger, within the meaning of section 555.0.1, or
(4) would be a foreign merger, within the meaning of section 555.0.1, if subparagraph ii of paragraph c of that section were read without reference to “resident in a country other than Canada”, and
iii. either
(1) the disposing corporation receives no consideration for the security, or
(2) in the case where the merger or combination is described in subparagraph 3 or 4 of subparagraph ii, the disposing corporation receives no consideration for the security other than property that was, immediately before the merger or combination, owned by the issuing corporation and that, on the merger or combination, becomes property of the new corporation; and
(j) any transfer of a property governed by civil law which does not entail a change in the right of the person who has the full ownership thereof, although such property be subject to a servitude, or in the right of the usufructuary, the emphyteutic lessee, an institute in a substitution or a beneficiary in a trust.
Chapter V.2 of Title II of Book I applies in relation to an election made under subparagraph v of paragraph f of the definition of “disposition” in subsection 1 of section 248 of the Income Tax Act or in relation to an election made under subparagraph v of subparagraph b of the second paragraph before 20 December 2006.
248. For the purposes of this Title, the disposition of property includes, except as expressly otherwise provided,
(a) any transaction or event entitling to proceeds of disposition of the property;
(b) any transaction or event by which,
i. where the property is a share, bond, debenture, bill, mortgage created under the jurisdiction of a province other than Québec, agreement of sale or other similar property, or an interest in it, the property is redeemed in whole or in part or is cancelled,
ii. where the property is a debt or any other right to receive an amount, the debt or other right is settled or cancelled,
iii. where the property is a share, the share is converted because of an amalgamation or merger,
iv. where the property is an option to acquire or dispose of property, the option expires, and
v. a trust, that can reasonably be considered to act as agent or mandatary for all the beneficiaries under the trust with respect to all dealings with all of the trust’s property, ceases to act as agent or mandatary for a beneficiary under the trust in respect of any dealing with any of the trust’s property, unless the trust is described in any of subparagraphs a to d of the third paragraph of section 647;
(c) any transfer of the property to a trust or, where the property is property of a trust, any transfer of the property to any beneficiary under the trust, except as provided by subparagraphs b and g of the second paragraph; and
(d) where the property is, or is part of, a taxpayer’s capital interest in a trust, a payment after 31 December 1999 to the taxpayer from the trust that can reasonably be considered to have been made because of the taxpayer’s capital interest in the trust, except as provided by subparagraphs d and e of the second paragraph.
The disposition of property does not include
(a) any transfer of the property as a consequence of which there is no change in the beneficial ownership of the property, except where the transfer is
i. from a person or a partnership to a trust for the benefit of the person or the partnership,
ii. from a trust to a beneficiary under the trust, or
iii. from one trust maintained for the benefit of one or more beneficiaries under the trust to another trust maintained for the benefit of the same beneficiaries;
(b) any transfer of the property as a consequence of which there is no change in the beneficial ownership of the property, where
i. the transferor and the transferee are trusts,
ii. the transfer is not by a trust resident in Canada to a trust not resident in Canada,
iii. the transferee does not receive the property as consideration for the transferee’s right as a beneficiary under the transferor trust,
iv. the transferee holds no property immediately before the transfer, other than property the cost of which is not included, for the purposes of this Part, in computing a balance of undeducted outlays, expenses or other amounts in respect of the transferee,
v. the transferee does not file an election with the Minister on or before the transferee’s filing-due date for its taxation year in which the transfer is made, or on such later date as is acceptable to the Minister, that this subparagraph b not apply,
vi. if the transferor is an amateur athlete trust, a cemetery care trust, an employee trust, a trust referred to in section 851.25, a segregated fund trust referred to in section 851.2, a trust referred to in paragraph c.4 of section 998 or a trust governed by an eligible funeral arrangement, a profit sharing plan, a registered education savings plan or a registered supplementary unemployment benefit plan, the transferee is the same type of trust, and
vii. the transfer results, or is part of a series of transactions or events that results, in the transferor ceasing to exist and, immediately before the time of the transfer or the beginning of that series, as the case may be, the transferee never held any property or held only property having a nominal value;
(c) (subparagraph repealed);
(d) where the property is part of a capital interest of a taxpayer in a trust, other than a personal trust or a trust prescribed for the purposes of section 688, that is described by reference to units issued by the trust, a payment after 31 December 1999 from the trust in respect of the capital interest, where the number of units in the trust that are owned by the taxpayer is not reduced because of the payment;
(e) where the property is a taxpayer’s capital interest in a trust, a payment to the taxpayer after 31 December 1999 in respect of the capital interest to the extent that the payment
i. is out of the income of the trust, determined without reference to paragraph a of section 657 and section 657.1, for a taxation year or out of the capital gains of the trust for the year, if the payment was made in the year or the right to the payment was acquired by the taxpayer in the year, or
ii. is in respect of an amount designated in respect of the taxpayer by the trust under section 667;
(f) any transfer of the property for the purpose only of securing a debt or a loan, or any transfer by a creditor for the purpose only of returning property that has been used as security for a debt or a loan;
(g) any transfer of the property to a trust as a consequence of which there is no change in the beneficial ownership of the property, where the main purpose of the transfer is
i. to effect payment under a debt or loan,
ii. to provide assurance that an absolute or contingent obligation of the transferor will be satisfied, or
iii. to facilitate either the provision of compensation or the enforcement of a penalty, in the event that an absolute or contingent obligation of the transferor is not satisfied;
(h) any issue of a bond, debenture, bill, hypothecary claim or mortgage;
(i) any issue by a corporation of a share of its capital stock, or any other transaction that, but for this subparagraph, would be a disposition by a corporation of a share of its capital stock; and
(j) any transfer of a property governed by civil law which does not entail a change in the right of the person who has the full ownership thereof, although such property be subject to a servitude, or in the right of the usufructuary, the emphyteutic lessee, an institute in a substitution or a beneficiary in a trust.
248. For the purposes of this Title, the disposition of property includes, except as expressly otherwise provided,
(a) any transaction or event entitling to proceeds of disposition of the property;
(b) any transaction or event by which,
i. where the property is a share, bond, debenture, bill, mortgage created under the jurisdiction of a province other than Québec, agreement of sale or other similar property, or an interest in it, the property is redeemed in whole or in part or is cancelled,
ii. where the property is a debt or any other right to receive an amount, the debt or other right is settled or cancelled,
iii. where the property is a share, the share is converted because of an amalgamation or merger,
iv. where the property is an option to acquire or dispose of property, the option expires, and
v. a trust, that can reasonably be considered to act as agent or mandatary for all the beneficiaries under the trust with respect to all dealings with all of the trust’s property, ceases to act as agent or mandatary for a beneficiary under the trust in respect of any dealing with any of the trust’s property, unless the trust is described in any of subparagraphs a to d of the third paragraph of section 647;
(c) any transfer of the property to a trust or, where the property is property of a trust, any transfer of the property to any beneficiary under the trust, except as provided by subparagraphs b, c and g of the second paragraph; and
(d) where the property is, or is part of, a taxpayer’s capital interest in a trust, a payment after 31 December 1999 to the taxpayer from the trust that can reasonably be considered to have been made because of the taxpayer’s capital interest in the trust, except as provided by subparagraphs d and e of the second paragraph.
The disposition of property does not include
(a) any transfer of the property as a consequence of which there is no change in the beneficial ownership of the property, except where the transfer is
i. from a person or a partnership to a trust for the benefit of the person or the partnership,
ii. from a trust to a beneficiary under the trust, or
iii. from one trust maintained for the benefit of one or more beneficiaries under the trust to another trust maintained for the benefit of the same beneficiaries;
(b) any transfer of the property as a consequence of which there is no change in the beneficial ownership of the property, where
i. the transferor and the transferee are trusts,
ii. the transfer is not by a trust resident in Canada to a trust not resident in Canada,
iii. the transferee does not receive the property as consideration for the transferee’s right as a beneficiary under the transferor trust,
iv. the transferee holds no property immediately before the transfer, other than property the cost of which is not included, for the purposes of this Part, in computing a balance of undeducted outlays, expenses or other amounts in respect of the transferee,
v. the transferee does not file an election with the Minister on or before the transferee’s filing-due date for its taxation year in which the transfer is made, or on such later date as is acceptable to the Minister, that this subparagraph b not apply,
vi. if the transferor is an amateur athlete trust, a cemetery care trust, an employee trust, a trust referred to in section 851.25, a segregated fund trust referred to in section 851.2, a trust referred to in paragraph c.4 of section 998 or a trust governed by an eligible funeral arrangement, a profit sharing plan, a registered education savings plan or a registered supplementary unemployment benefit plan, the transferee is the same type of trust, and
vii. the transfer results, or is part of a series of transactions or events that results, in the transferor ceasing to exist and, immediately before the time of the transfer or the beginning of that series, as the case may be, the transferee never held any property or held only property having a nominal value;
(c) any transfer of the property where
i. the transferor is a trust governed by a registered retirement savings plan or a trust governed by a registered retirement income fund,
ii. the transferee is a trust governed by a registered retirement savings plan or a trust governed by a registered retirement income fund,
iii. the annuitant under the plan or fund that governs the transferor is also the annuitant under the plan or fund that governs the transferee,
iv. the transferee holds no property immediately before the transfer, other than property the cost of which is not included, for the purposes of this Part, in computing a balance of undeducted outlays, expenses or other amounts in respect of the transferee,
v. the transferee does not file an election with the Minister on or before the transferee’s filing-due date for its taxation year in which the transfer is made, or on such later date as is acceptable to the Minister, that this subparagraph c not apply, and
vi. the transfer results, or is part of a series of transactions or events that results, in the transferor ceasing to exist and, immediately before the time of the transfer or the beginning of that series, as the case may be, the transferee never held any property or held only property having a nominal value;
(d) where the property is part of a capital interest of a taxpayer in a trust, other than a personal trust or a trust prescribed for the purposes of section 688, that is described by reference to units issued by the trust, a payment after 31 December 1999 from the trust in respect of the capital interest, where the number of units in the trust that are owned by the taxpayer is not reduced because of the payment;
(e) where the property is a taxpayer’s capital interest in a trust, a payment to the taxpayer after 31 December 1999 in respect of the capital interest to the extent that the payment
i. is out of the income of the trust, determined without reference to paragraph a of section 657 and section 657.1, for a taxation year or out of the capital gains of the trust for the year, if the payment was made in the year or the right to the payment was acquired by the taxpayer in the year, or
ii. is in respect of an amount designated in respect of the taxpayer by the trust under section 667;
(f) any transfer of the property for the purpose only of securing a debt or a loan, or any transfer by a creditor for the purpose only of returning property that has been used as security for a debt or a loan;
(g) any transfer of the property to a trust as a consequence of which there is no change in the beneficial ownership of the property, where the main purpose of the transfer is
i. to effect payment under a debt or loan,
ii. to provide assurance that an absolute or contingent obligation of the transferor will be satisfied, or
iii. to facilitate either the provision of compensation or the enforcement of a penalty, in the event that an absolute or contingent obligation of the transferor is not satisfied;
(h) any issue of a bond, debenture, bill, hypothecary claim or mortgage;
(i) any issue by a corporation of a share of its capital stock, or any other transaction that, but for this subparagraph, would be a disposition by a corporation of a share of its capital stock; and
(j) any transfer of a property governed by civil law which does not entail a change in the right of the person who has the full ownership thereof, although such property be subject to a servitude, or in the right of the usufructuary, the emphyteutic lessee, an institute in a substitution or a beneficiary in a trust.
