I-3 - Taxation Act

Section 624.1 Disposition versions

2019-06-19

624.1. (Repealed).

1994, c. 22, s. 215; 1996, c. 39, s. 169; 1997, c. 3, s. 71; 2003, c. 2, s. 141; 2005, c. 1, s. 124; 2019, c. 14, s. 165.

2006-03-01

624.1. Where incorporeal capital property in respect of a business is distributed by the partnership contemplated in section 620 to persons who were members thereof immediately before its dissolution, the following rules apply:

(a)  for the purpose of determining, under this Part, any amount relating to an eligible incorporeal capital amount, an incorporeal capital amount or to incorporeal capital property, each such person is deemed to have continued to carry on the business, in respect of which the property was incorporeal capital property and that was previously carried on by the partnership, until the time that the person disposes of the person’s undivided interest in the property;

(b)  for the purpose of determining the person’s eligible incorporeal capital amount in respect of the business, an amount equal to 3/4 of the particular amount determined under section 622 in respect of the business shall be added to the amount otherwise determined in respect thereof under subparagraph i of subparagraph a of the second paragraph of section 107; and

(c)  for the purpose of determining after the particular time the amount required by paragraph b of section 105 to be included in computing the person’s income in respect of any subsequent disposition of the property of the business, the amount determined under subparagraph ii of subparagraph a of the second paragraph of section 107 is deemed to be equal to that person’s share of the amount determined under that subparagraph ii in respect of the partnership’s business immediately before the particular time.

1994, c. 22, s. 215; 1996, c. 39, s. 169; 1997, c. 3, s. 71; 2003, c. 2, s. 141; 2005, c. 1, s. 124.