I-3 - Taxation Act

Section 1141.1.1 Disposition versions

2009-06-04

1141.1.1. A corporation referred to in any of sections 1140, 1141 and 1141.1 shall also, in computing its paid-up capital for a taxation year, include an amount equal to 50% of the total of all amounts each of which is

(a)  the value at the end of the year of an asset of the corporation, other than property held by the corporation primarily for the purpose of resale that was acquired by the corporation in the year or the preceding taxation year, as a consequence of another person’s default, or anticipated default, in respect of a debt owed to the corporation, that is corporeal property; and

(b)  the corporation’s share, in respect of a partnership of which the corporation is a member at the end of the year, of the value of an asset of the partnership, at the end of the partnership’s last fiscal period ending at or before the end of the year, that is corporeal property.

For the purposes of subparagraph b of the first paragraph, the corporation’s share of the value of corporeal property of a partnership is equal to the agreed proportion of the value in respect of the corporation for the partnership’s fiscal period referred to in that subparagraph b.

1986, c. 15, s. 204; 1995, c. 63, s. 250; 1997, c. 3, s. 71; 1999, c. 86, s. 94; 2001, c. 51, s. 226; 2005, c. 1, s. 284; 2005, c. 38, s. 321; 2009, c. 15, s. 441.

2006-03-01

1141.1.1. A corporation referred to in any of sections 1140, 1141 and 1141.1 shall also, in computing its paid-up capital for a taxation year, include an amount equal to 50% of the total of all amounts each of which is

(a)  the value at the end of the year of an asset of the corporation, other than property held by the corporation primarily for the purpose of resale that was acquired by the corporation in the year or the preceding taxation year, as a consequence of another person’s default, or anticipated default, in respect of a debt owed to the corporation, that is corporeal property; and

(b)  the corporation’s share, in respect of a partnership of which the corporation is a member at the end of the year, of the value of an asset of the partnership, at the end of the partnership’s last fiscal period ending at or before the end of the year, that is corporeal property.

For the purposes of subparagraph b of the first paragraph, the corporation’s share of the value of corporeal property of a partnership is equal to the proportion of the value that the corporation’s share of the income or loss of the partnership, for the fiscal period referred to in that subparagraph b, is of the income or loss of that partnership for that fiscal period, on the assumption that, if the income and loss of the partnership for that fiscal period are nil, the partnership’s income for that fiscal period is equal to $1,000,000.

1986, c. 15, s. 204; 1995, c. 63, s. 250; 1997, c. 3, s. 71; 1999, c. 86, s. 94; 2001, c. 51, s. 226; 2005, c. 1, s. 284; 2005, c. 38, s. 321.