I-3 - Taxation Act

Section 485.1 Disposition versions

2006-03-01

485.1. Notwithstanding the definition of “successor pool” in section 485, the successor pool at any time for a commercial obligation in respect of a specified amount in relation to a debtor is deemed to be nil unless

(a)  the obligation was issued by the debtor before, and not in contemplation of, the event described in paragraph a of section 485.8 that gives rise to the deductibility under any of sections 418.17, 418.17.3, 418.18, 418.19 and 418.21, as the case may be, of all or part of that amount in computing the debtor’s income; or

(b)  all or substantially all of the amount for which the obligation was issued was used to satisfy the principal amount of another obligation to which paragraph a or this paragraph would apply if the other obligation were still outstanding.

1984, c. 15, s. 104; 1996, c. 39, s. 141; 1997, c. 3, s. 71; 2004, c. 8, s. 102.