I-3 - Taxation Act

Section 1029.8.36.59.22 Disposition versions

2010-10-27

1029.8.36.59.22. (Repealed).

2005, c. 1, s. 244; 2005, c. 23, s. 192; 2009, c. 15, s. 280; 2010, c. 25, s. 139.

2009-06-04

1029.8.36.59.22. For the purposes of this division, where an employee successively holds eligible employments with eligible taxpayers or qualified partnerships that form an associated group at any time in a period during which the employee holds one of those employments, the eligibility period relating to the employee, of any eligible taxpayer or qualified partnership that is a member of the associated group, must not extend beyond the first 52 weeks during which the employee qualifies as an eligible employee of a taxpayer or partnership that is a member of the group.

For the purposes of the first paragraph, an associated group, at a particular time, means the aggregate of all corporations that are associated with each other at that time; in that respect, the following rules apply:

(a)  an eligible taxpayer that is an individual, other than a trust, is deemed to be a corporation all the voting shares in the capital stock of which are owned at the particular time by the individual;

(b)  a qualified partnership is deemed to be a corporation whose taxation year corresponds to the partnership’s fiscal period and all the voting shares in the capital stock of which are owned at the particular time by each member of the partnership in a proportion equal to the agreed proportion in respect of the member for the partnership’s fiscal period that includes the particular time; and

(c)  an eligible taxpayer that is a trust is deemed to be a corporation all the voting shares in the capital stock of which

i.  in the case of a testamentary trust under which one or more beneficiaries are entitled to receive all of the income of the trust that arose before the date of death of one or the last surviving of those beneficiaries, in this subparagraph referred to as the “distribution date”, and under which no other person can, before the distribution date, receive or otherwise obtain the enjoyment of any of the income or capital of the trust,

(1)  where any such beneficiary’s share of the income or capital of the trust depends on the exercise by any person of, or the failure by any person to exercise, a power to appoint, and where the particular time occurs before the distribution date, are owned at that time by the beneficiary, and

(2)   where subparagraph 1 does not apply and where the particular time occurs before the distribution date, are owned at that time by the beneficiary in a proportion equal to the proportion that the fair market value of the beneficial interest in the trust of the beneficiary is of the fair market value of the beneficial interests in the trust of all the beneficiaries,

ii.  where a beneficiary’s share of the accumulating income or capital of the trust depends on the exercise by any person of, or the failure by any person to exercise, a power to appoint, are owned at the particular time by the beneficiary, except where subparagraph i applies and that time occurs before the distribution date,

iii.  in any case where subparagraph ii does not apply, are owned at the particular time by the beneficiary in a proportion equal to the proportion that the fair market value of the beneficial interest in the trust of the beneficiary is of the fair market value of all beneficial interests in the trust, except where subparagraph i applies and that time occurs before the distribution date, and

iv.  in the case of a trust referred to in section 467, are owned at the particular time by the person referred to in that section from whom property of the trust or property for which it was substituted was directly or indirectly received.

2005, c. 1, s. 244; 2005, c. 23, s. 192; 2009, c. 15, s. 280.

2006-03-01

1029.8.36.59.22. For the purposes of this division, where an employee successively holds eligible employments with eligible taxpayers or qualified partnerships that form an associated group at any time in a period during which the employee holds one of those employments, the eligibility period relating to the employee, of any eligible taxpayer or qualified partnership that is a member of the associated group, must not extend beyond the first 52 weeks during which the employee qualifies as an eligible employee of a taxpayer or partnership that is a member of the group.

For the purposes of the first paragraph, an associated group, at a particular time, means the aggregate of all corporations that are associated with each other at that time; in that respect, the following rules apply:

(a)  an eligible taxpayer that is an individual, other than a trust, is deemed to be a corporation all the voting shares in the capital stock of which are owned at the particular time by the individual;

(b)  a qualified partnership is deemed to be a corporation the taxation year of which corresponds to its fiscal period and all the voting shares in the capital stock of which are owned at the particular time by each member of the partnership in a proportion equal to the proportion that the member’s share of the income or loss of the partnership for its fiscal period that includes the particular time is of the income or loss of the partnership for that fiscal period, on the assumption that, if the income and loss of the partnership for that fiscal period are nil, the partnership’s income for that fiscal period is equal to $1,000,000; and

(c)  an eligible taxpayer that is a trust is deemed to be a corporation all the voting shares in the capital stock of which

i.  in the case of a testamentary trust under which one or more beneficiaries are entitled to receive all of the income of the trust that arose before the date of death of one or the last surviving of those beneficiaries, in this subparagraph referred to as the “distribution date”, and under which no other person can, before the distribution date, receive or otherwise obtain the enjoyment of any of the income or capital of the trust,

(1)  where any such beneficiary’s share of the income or capital of the trust depends on the exercise by any person of, or the failure by any person to exercise, a power to appoint, and where the particular time occurs before the distribution date, are owned at that time by the beneficiary, and

(2)   where subparagraph 1 does not apply and where the particular time occurs before the distribution date, are owned at that time by the beneficiary in a proportion equal to the proportion that the fair market value of the beneficial interest in the trust of the beneficiary is of the fair market value of the beneficial interests in the trust of all the beneficiaries,

ii.  where a beneficiary’s share of the accumulating income or capital of the trust depends on the exercise by any person of, or the failure by any person to exercise, a power to appoint, are owned at the particular time by the beneficiary, except where subparagraph i applies and that time occurs before the distribution date,

iii.  in any case where subparagraph ii does not apply, are owned at the particular time by the beneficiary in a proportion equal to the proportion that the fair market value of the beneficial interest in the trust of the beneficiary is of the fair market value of all beneficial interests in the trust, except where subparagraph i applies and that time occurs before the distribution date, and

iv.  in the case of a trust referred to in section 467, are owned at the particular time by the person referred to in that section from whom property of the trust or property for which it was substituted was directly or indirectly received.

2005, c. 1, s. 244; 2005, c. 23, s. 192.