I-3 - Taxation Act

Section 1033.23 Disposition versions

2021-06-02

1033.23. Despite sections 1033.17 and 1033.18, where the twentieth anniversary of the deemed disposition, because of section 436 or 653, of an eligible share of the capital stock of a corporation occurs in a particular taxation year of an individual and the fair market value of that eligible share on the twentieth anniversary of the deemed disposition is less than its fair market value at the time of the deemed disposition, section 1033.17 or 1033.18, as the case may be, is to be read, if the Minister is of the opinion that the reduction in value is not attributable to a distribution in any manner whatsoever, in relation to that eligible share and in respect of the individual’s particular taxation year and a subsequent taxation year in respect of which section 1033.24 does not apply,

(a)  as if the formula in subparagraph i of subparagraph a of the first paragraph were replaced by the formula

120% {A – B – [(A − B)/A × C]} × D × (1 – E);

(b)  (subparagraph repealed);

(c)  as if the following subparagraph were added at the end of the second paragraph:

“(e) E is the proportion, expressed as a percentage, that the fair market value of the eligible share on the twenty-second anniversary of the deemed disposition is of its fair market value at the time of the deemed disposition.”; and

(d)  as if subparagraph c of the third paragraph were struck out.

2019, c. 14, s. 424; 2021, c. 14, s. 169.

2019-06-19

1033.23. Despite sections 1033.17 and 1033.18, where the twentieth anniversary of the deemed disposition, because of section 436 or 653, of an eligible share of the capital stock of a corporation occurs in a particular taxation year of an individual and the fair market value of that eligible share on the twentieth anniversary of the deemed disposition is less than its fair market value at the time of the deemed disposition, section 1033.17 or 1033.18, as the case may be, is to be read, if the Minister is of the opinion that the reduction in value is not attributable to a distribution in any manner whatsoever, in relation to that eligible share and in respect of the individual’s particular taxation year and a subsequent taxation year in respect of which section 1033.24 does not apply,

(a)  as if the formula in subparagraph i of subparagraph a of the first paragraph were replaced by the formula

{A – B – [(A − B)/A × C]} × (1 – D);

(b)  as if “, on the one hand, equal to the amount that would be determined in accordance with subparagraph a if the formula in subparagraph i of that subparagraph were read as if “120%” were replaced by “100%” and, on the other hand,” in the portion of subparagraph b of the first paragraph before subparagraph i were struck out;

(c)  as if the following subparagraph were added at the end of the second paragraph:

“(d) D is the proportion, expressed as a percentage, that the fair market value of the eligible share on the twentieth anniversary of the deemed disposition is of its fair market value at the time of the deemed disposition.”; and

(d)  as if subparagraph c of the third paragraph were struck out.

2019, c. 14, s. 424.