I-3 - Taxation Act

Section 1029.8.36.0.25.0.1 Disposition versions

2007-11-07

1029.8.36.0.25.0.1. Despite section 1029.8.36.0.25, no amount may, in relation to a qualified property, be deemed to have been paid to the Minister by a corporation for a particular taxation year, in respect of acquisition costs incurred by the corporation in that year in respect of the property if, at any given time before the corporation’s filing-due date for the particular year, the property ceases, otherwise than by reason of its loss, of its involuntary destruction by fire, theft or water, of a major breakdown of the property or of its obsolescence, to be used by the corporation, mainly in a qualified centre or exclusively or almost exclusively to earn income from,

(a)  if the corporation is an exempt corporation and the particular year is not the particular year referred to in subparagraph c, a business carried on by the corporation in that centre;

(b)  if the corporation is a specified corporation, the qualified centre is a biotechnology development centre and the particular year is not the particular year referred to in subparagraph c, the part of a business carried on by the corporation in that centre that may reasonably be attributed to the carrying out of a specified activity; or

(c)  if, following an acquisition of control referred to in subparagraph f of the first paragraph of section 771.13 that occurs in the particular year or an election made under subparagraph g of that paragraph to become a specified corporation from a particular day in that year, the corporation ceases to be an exempt corporation at the beginning of the taxation year that follows the particular year and, as the case may be,

i.  the qualified centre is a biotechnology development centre,

(1)  a business carried on by the corporation in that centre, if the given time occurs before the acquisition of control or the particular day, or

(2)  the part of a business carried on by the corporation in that centre that may reasonably be attributed to the carrying out of a specified activity, in any other case, or

ii.  the qualified centre is not a biotechnology development centre and the given time occurs before the acquisition of control or the particular day, a business carried on by the corporation in that centre.

For the purposes of the first paragraph, where, at any time, a corporation disposes of qualified property for proceeds of disposition equal to or greater than 10% of the cost of acquiring it, the corporation is deemed not to have ceased to use, at that time, the property by reason of its obsolescence; in that respect, where the parties to the sale are not dealing with each other at arm’s length, the proceeds of disposition of the property are deemed to be equal to its fair market value.

2004, c. 21, s. 339; 2005, c. 23, s. 173; 2007, c. 12, s. 177.

2006-03-01

1029.8.36.0.25.0.1. Despite section 1029.8.36.0.25, no amount may, in relation to qualified property, be deemed to have been paid to the Minister by a corporation for a taxation year, in respect of acquisition costs incurred by the corporation in that year in respect of the property, where at any time before the corporation’s filing-due date for that taxation year, the property ceases, otherwise than by reason of its loss, the involuntary destruction of the property by fire, theft or water, a major breakdown of the property or its obsolescence, to be used by the corporation, mainly in a qualified centre or exclusively or almost exclusively to earn income from,

(a)  where the corporation is an exempt corporation, a business carried on by the corporation in that centre; or

(b)  where the corporation is a specified corporation and the qualified centre is a biotechnology development centre, the part of a business carried on by the corporation in that centre that may reasonably be attributed to the carrying out of a specified activity.

For the purposes of the first paragraph, where, at any time, a corporation disposes of qualified property for proceeds of disposition equal to or greater than 10% of the cost of acquiring it, the corporation is deemed not to have ceased to use, at that time, the property by reason of its obsolescence; in that respect, where the parties to the sale are not dealing with each other at arm’s length, the proceeds of disposition of the property are deemed to be equal to its fair market value.

2004, c. 21, s. 339; 2005, c. 23, s. 173.