I-3 - Taxation Act

Section 333.14 Disposition versions

2015-10-21

333.14. Section 270 does not apply to an amount received or receivable as consideration for a restrictive covenant.

2009, c. 5, s. 117; 2015, c. 21, s. 164.

2009-05-15

333.14. If any of sections 333.8 to 333.10 applies in respect of a restrictive covenant granted by a taxpayer,

(a)  the amount referred to in paragraph f of section 333.8 is to be added in computing the amount received or receivable by the vendors as consideration for the disposition of the interest referred to in paragraph b of section 333.8;

(b)  the amount that could reasonably be regarded as consideration referred to in subparagraph i or ii of paragraph d of section 333.9 is to be added in computing

i.  the amount that is to be included in computing the aggregate determined under subparagraph b of the second paragraph of section 107 in respect of a business carried on by the vendor through an establishment located in Canada, or

ii.  the amount that is to be included in computing the aggregate determined under subparagraph b of the second paragraph of section 107 in respect of a business carried on by the eligible corporation through an establishment located in Canada; and

(c)  the amount that can reasonably be regarded as being in part the consideration for a restrictive covenant received or receivable to which section 333.10 applies is to be added in computing the consideration,

i.  if subparagraph i of paragraph c of section 333.10 applies, that is received or receivable by the vendor from the disposition of the property, and

ii.  if subparagraph ii of paragraph c of section 333.10 applies, that is received or receivable by each taxpayer who disposes of shares of the target corporation to the extent that consideration is received or receivable by each such taxpayer.

2009, c. 5, s. 117.