I-3 - Taxation Act

Section 105.3 Disposition versions

2019-06-19

105.3. (Repealed).

2000, c. 5, s. 36; 2003, c. 2, s. 40; 2005, c. 1, s. 38; 2017, c. 29, s. 33; 2019, c. 14, s. 78.

2017-12-07

105.3. For the purposes of Title VI.5 of Book IV and of paragraph b of section 28 as it applies for the purposes of that Title, an amount included under paragraph b of section 105 in computing a taxpayer’s income for a particular taxation year from a business is deemed to be a taxable capital gain of the taxpayer for the year from the disposition in the year of a qualified farm or fishing property, within the meaning of section 726.6, to the extent of the lesser of

(a)  the amount included under paragraph b of section 105 in computing the taxpayer’s income for the particular year from the business; and

(b)  the amount determined by the formula

A − B.

In the formula provided for in subparagraph b of the first paragraph,

(a)  A is the amount by which the aggregate of the following amounts exceeds the amount determined under the third paragraph:

i.  3/4 of the aggregate of all amounts each of which is the taxpayer’s proceeds from a disposition in a preceding taxation year that begins after 31 December 1987 but that ends before 28 February 2000 of incorporeal capital property in respect of the business that, at the time of disposition, was a qualified farm property of the taxpayer,

ii.  2/3 of the aggregate of all amounts each of which is the taxpayer’s proceeds from a disposition in the particular year or a preceding taxation year that ends after 27 February 2000 but before 18 October 2000 of incorporeal capital property in respect of the business that, at the time of the disposition, was a qualified farm property of the taxpayer, and

iii.  1/2 of the aggregate of all amounts each of which is the taxpayer’s proceeds from a disposition in the particular year or a preceding taxation year that ends after 17 October 2000 of incorporeal capital property in respect of the business that was, at the time of disposition, a qualified farm property, a qualified fishing property or a qualified farm or fishing property of the taxpayer; and

(b)  B is the aggregate of all amounts each of which is

i.  that portion of an amount deemed under subparagraph ii of paragraph a of section 105, as it applied in respect of the business to a fiscal period that begins after 31 December 1987 and ends before 23 February 1994, to be a taxable capital gain of the taxpayer that may reasonably be attributed to a disposition of a property that was, at the time of disposition, a qualified farm property of the taxpayer, or

ii.  an amount deemed under this division to be a taxable capital gain of the taxpayer for a taxation year preceding the particular year from the disposition of a property that was, at the time of disposition, a qualified farm property, a qualified fishing property or a qualified farm or fishing property of the taxpayer.

The amount to which subparagraph a of the second paragraph refers is the aggregate of

(a)  3/4 of the aggregate of all amounts each of which is

i.  an incorporeal capital amount of the taxpayer in respect of the business that is payable or disbursed in relation to a property that was, at the time of disposition, a qualified farm property disposed of by the taxpayer in a preceding taxation year that begins after 31 December 1987 but that ends before 28 February 2000, or

ii.  an outlay or expense of the taxpayer that was not deductible in computing the taxpayer’s income and was made or incurred for the purpose of making a disposition referred to in subparagraph i;

(b)  2/3 of the aggregate of all amounts each of which is

i.  an incorporeal capital amount of the taxpayer in respect of the business that is payable or disbursed in relation to a property that was, at the time of disposition, a qualified farm property disposed of by the taxpayer in the particular year or a preceding taxation year that ends after 27 February 2000 but before 18 October 2000, or

ii.  an outlay or expense of the taxpayer that was not deductible in computing the taxpayer’s income and was made or incurred for the purpose of making a disposition referred to in subparagraph i; and

(c)  1/2 of the aggregate of all amounts each of which is

i.  an incorporeal capital amount of the taxpayer in respect of the business that is payable or disbursed in relation to a property that was, at the time of disposition, a qualified farm property, a qualified fishing property or a qualified farm or fishing property disposed of by the taxpayer in the particular year or a preceding taxation year that ends after 17 October 2000, or

ii.  an outlay or expense of the taxpayer that was not deductible in computing the taxpayer’s income and was made or incurred for the purpose of making a disposition referred to in subparagraph i.

For the purposes of this section, “qualified farm property” and “qualified fishing property” have the meaning assigned by section 726.6, as it read before subparagraphs a and a.0.1 of the first paragraph of that section were struck out.

2000, c. 5, s. 36; 2003, c. 2, s. 40; 2005, c. 1, s. 38; 2017, c. 29, s. 33.

2006-03-01

105.3. For the purposes of Title VI.5 of Book IV and of paragraph b of section 28 as it applies for the purposes of that Title, an amount included under paragraph b of section 105 in computing a taxpayer’s income for a particular taxation year from a business is deemed to be a taxable capital gain of the taxpayer for the year from the disposition in the year of qualified farm property, within the meaning of section 726.6, to the extent of the lesser of

(a)  the amount included under paragraph b of section 105 in computing the taxpayer’s income for the particular year from the business; and

(b)  the amount determined by the formula

A − B.

In the formula provided for in subparagraph b of the first paragraph,

(a)  A is the amount by which the aggregate of the following amounts exceeds the amount determined under the third paragraph:

i.  3/4 of the aggregate of all amounts each of which is the taxpayer’s proceeds from a disposition in a preceding taxation year that begins after 31 December 1987 but that ends before 28 February 2000 of incorporeal capital property in respect of the business that, at the time of disposition, was a qualified farm property of the taxpayer,

ii.  2/3 of the aggregate of all amounts each of which is the taxpayer’s proceeds from a disposition in the particular year or a preceding taxation year that ends after 27 February 2000 but before 18 October 2000 of incorporeal capital property in respect of the business that, at the time of the disposition, was a qualified farm property of the taxpayer, and

iii.  1/2 of the aggregate of all amounts each of which is the taxpayer’s proceeds from a disposition in the particular year or a preceding taxation year that ends after 17 October 2000 of incorporeal capital property in respect of the business that, at the time of the disposition, was a qualified farm property of the taxpayer;

(b)  B is the aggregate of all amounts each of which is

i.  that portion of an amount deemed under subparagraph ii of paragraph a of section 105, as it applied in respect of the business to a fiscal period that begins after 31 December 1987 and ends before 23 February 1994, to be a taxable capital gain of the taxpayer that may reasonably be attributed to a disposition of a qualified farm property of the taxpayer, or

ii.  an amount deemed under this division to be a taxable capital gain of the taxpayer for a taxation year preceding the particular year from the disposition of qualified farm property of the taxpayer.

The amount to which subparagraph a of the second paragraph refers is the aggregate of

(a)  3/4 of the aggregate of all amounts each of which is

i.  an incorporeal capital amount of the taxpayer in respect of the business that is payable or disbursed in relation to a qualified farm property disposed of by the taxpayer in a preceding taxation year that begins after 31 December 1987 but that ends before 28 February 2000, or

ii.  an outlay or expense of the taxpayer that was not deductible in computing the taxpayer’s income and was made or incurred for the purpose of making a disposition referred to in subparagraph i;

(b)  2/3 of the aggregate of all amounts each of which is

i.  an incorporeal capital amount of the taxpayer in respect of the business that is payable or disbursed in relation to a qualified farm property disposed of by the taxpayer in the particular year or a preceding taxation year that ends after 27 February 2000 but before 18 October 2000, or

ii.  an outlay or expense of the taxpayer that was not deductible in computing the taxpayer’s income and was made or incurred for the purpose of making a disposition referred to in subparagraph i; and

(c)  1/2 of the aggregate of all amounts each of which is

i.  an incorporeal capital amount of the taxpayer in respect of the business that is payable or disbursed in relation to a qualified farm property disposed of by the taxpayer in the particular year or a preceding taxation year that ends after 17 October 2000, or

ii.  an outlay or expense of the taxpayer that was not deductible in computing the taxpayer’s income and was made or incurred for the purpose of making a disposition referred to in subparagraph i.

2000, c. 5, s. 36; 2003, c. 2, s. 40; 2005, c. 1, s. 38.