I-3 - Taxation Act

Section 668.8 Disposition versions

2015-10-21

668.8. (Repealed).

2003, c. 2, s. 168; 2015, c. 21, s. 219.

2006-03-01

668.8. Where an amount is designated under section 668 in respect of a beneficiary by a trust for a particular taxation year of the trust that ends in a taxation year of the beneficiary that includes 28 February 2000 or 17 October 2000 and section 668.5 does not apply in respect of the designated amount, the following rules apply:

(a)  notwithstanding section 668 and except as a consequence of the application of paragraph b, the designated amount shall not be included in computing the beneficiary’s income;

(b)  the beneficiary is deemed to have a capital gain from the disposition by the beneficiary of capital property on the day on which the particular year ends for an amount equal to the amount by which the amount determined by dividing the designated amount by the fraction in section 231 that applies in respect of the trust for the particular year exceeds the amount claimed by the beneficiary, which amount may not be greater than the beneficiary’s exempt capital gains balance for the year in respect of the trust; and

(c)  no amount may be claimed under section 251.3 by the beneficiary in respect of the designated amount.

2003, c. 2, s. 168.