I-3 - Taxation Act

Section 851.22.23 Disposition versions

2009-05-15

851.22.23. Where, at a particular time after 22 February 1994, a taxpayer becomes or ceases to be a financial institution,

(a)  if the taxpayer is a corporation and if, but for this paragraph, no taxation year of the taxpayer would end immediately before the particular time, the taxation year of the taxpayer that would otherwise have included the particular time is deemed to have ended immediately before that time and a new taxation year of the taxpayer is deemed to have begun at the particular time and to have ended at the time at which the taxpayer’s taxation year (determined for the purposes of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.))) that includes the particular time, ended;

(a.1)  if the taxpayer is a trust and if, but for this paragraph, no taxation year of the taxpayer would end immediately before the particular time, except for the purposes of section 1120.0.1, the taxation year of the taxpayer that would otherwise have included the particular time is deemed to have ended immediately before that time and a new taxation year of the taxpayer is deemed to have begun at the particular time;

(b)  if the taxpayer becomes a financial institution, the taxpayer is deemed to have disposed, immediately before the end of its particular taxation year that ends immediately before the particular time, of each of the following properties held by the taxpayer for proceeds of disposition equal to the property’s fair market value at the time of that disposition:

i.  a specified debt obligation, or

ii.  a mark-to-market property of the taxpayer for the particular taxation year or for the taxpayer’s taxation year that includes the particular time;

(c)  where the taxpayer ceases to be a financial institution, the taxpayer is deemed to have disposed, immediately before the end of its taxation year that ends immediately before the particular time, of each property held by the taxpayer that is a specified debt obligation, other than a mark-to-market property of the taxpayer for the year, for proceeds equal to its fair market value at the time of disposition; and

(d)  the taxpayer is deemed to have reacquired, at the end of its taxation year that ends immediately before the particular time, each property deemed under paragraph b or c to have been disposed of by the taxpayer, at a cost equal to the proceeds of disposition of the property.

1996, c. 39, s. 235; 2001, c. 53, s. 175; 2009, c. 5, s. 355.

2006-03-01

851.22.23. Where, at a particular time after 22 February 1994, a taxpayer becomes or ceases to be a financial institution,

(a)  where a taxation year of the taxpayer would not, but for this subparagraph, end immediately before the particular time,

i.  except for the purposes of section 1120.0.1, the taxation year of the taxpayer that would otherwise have included the particular time is deemed to have ended immediately before that time and a new taxation year of the taxpayer is deemed to have begun at the particular time, and

ii.  for the purpose of determining the taxpayer’s fiscal period after the particular time, the taxpayer is deemed not to have established a fiscal period before that time;

(b)  where the taxpayer becomes a financial institution, the taxpayer is deemed to have disposed, immediately before the end of its taxation year that ends immediately before the particular time, for proceeds equal to its fair market value at the time of disposition, of each property held by the taxpayer that is

i.  a specified debt obligation, other than a mark-to-market property for the year, or

ii.  where the year ends after 30 October 1994, a mark-to-market property for the year;

(c)  where the taxpayer ceases to be a financial institution, the taxpayer is deemed to have disposed, immediately before the end of its taxation year that ends immediately before the particular time, of each property held by the taxpayer that is a specified debt obligation, other than a mark-to-market property of the taxpayer for the year, for proceeds equal to its fair market value at the time of disposition; and

(d)  the taxpayer is deemed to have reacquired, at the end of the taxation year referred to in paragraph b or c, each property deemed by that paragraph to have been disposed of by the taxpayer, at a cost equal to the proceeds of disposition of the property.

1996, c. 39, s. 235; 2001, c. 53, s. 175.