I-3 - Taxation Act

Section 106.5 Disposition versions

2019-06-19

106.5. (Repealed).

2004, c. 8, s. 21; 2005, c. 1, s. 45; 2019, c. 14, s. 78.

2006-03-01

106.5. Where at a particular time a taxpayer not resident in Canada ceases to use, in connection with a business or part of a business carried on by the taxpayer in Canada immediately before the particular time, a property that was immediately before the particular time incorporeal capital property of the taxpayer, other than a property that was disposed of by the taxpayer at the particular time, the taxpayer is deemed to have disposed of the property immediately before the particular time for proceeds of disposition equal to the amount determined by the formula

A − B.

In the formula provided for in the first paragraph,

(a)  A is the fair market value of the property immediately before the particular time; and

(b)  B is

i.  where at a previous time before the particular time the taxpayer ceased to use the property in connection with a business or part of a business carried on by the taxpayer outside Canada and began to use it in connection with a business or part of a business carried on by the taxpayer in Canada, the amount by which the fair market value of the property at the previous time exceeded its cost to the taxpayer at the previous time, and

ii.  in any other case, an amount equal to zero.

2004, c. 8, s. 21; 2005, c. 1, s. 45.