I-3 - Taxation Act

Section 785.2.8 Disposition versions

2015-10-21

785.2.8. Where a person (in this section referred to as the “purchaser”) acquires from an inter vivos trust (in this section referred to as the “vendor”) a property that is a specified immovable that the vendor is deemed to have disposed of in a taxation year under paragraph b.1 of section 785.1 because the vendor became resident in Canada, the following rules apply:

(a)  the purchaser shall pay to the Minister on behalf of the vendor, as or on account of tax payable by the vendor under this Part for the year, an amount equal to 12.875% of the purchase price of the property;

(b)  the purchaser is authorized to deduct from any amount the purchaser pays to the vendor or to withhold from any amount credited by the purchaser to the vendor or to otherwise recover from the vendor the amount paid by the purchaser under subparagraph a; and

(c)  the purchaser shall, within 30 days after the end of the month in which the purchaser acquires the property, pay to the Minister the amount the purchaser is required to pay under subparagraph a.

The first paragraph does not apply to a purchaser if

(a)  a certificate has been issued to the purchaser by the Minister under section 785.2.7 in respect of the property; or

(b)  after reasonable inquiry, the purchaser had no reason to believe that the vendor was deemed to have disposed of the property in the year under paragraph b.1 of section 785.1.

2013, c. 10, s. 70; 2015, c. 21, s. 329.

2013-06-05

785.2.8. Where a person (in this section referred to as the “purchaser”) acquires from an inter vivos trust (in this section referred to as the “vendor”) a property that is a specified immovable that the vendor is deemed to have disposed of in a taxation year under paragraph b.1 of section 785.1 because the vendor became resident in Canada, the following rules apply:

(a)  the purchaser shall pay to the Minister on behalf of the vendor, as or on account of tax payable by the vendor under this Part for the year, an amount equal to 12% of the purchase price of the property;

(b)  the purchaser is authorized to deduct from any amount the purchaser pays to the vendor or to withhold from any amount credited by the purchaser to the vendor or to otherwise recover from the vendor the amount paid by the purchaser under subparagraph a; and

(c)  the purchaser shall, within 30 days after the end of the month in which the purchaser acquires the property, pay to the Minister the amount the purchaser is required to pay under subparagraph a.

The first paragraph does not apply to a purchaser if

(a)  a certificate has been issued to the purchaser by the Minister under section 785.2.7 in respect of the property; or

(b)  after reasonable inquiry, the purchaser had no reason to believe that the vendor was deemed to have disposed of the property in the year under paragraph b.1 of section 785.1.

2013, c. 10, s. 70.