I-3 - Taxation Act

Section 1106.0.2 Disposition versions

2017-12-07

1106.0.2. (Repealed).

2003, c. 2, s. 289; 2017, c. 29, s. 207.

2006-03-01

1106.0.2. Where section 1106 applies in respect of a dividend paid by an investment corporation in the period that begins 60 days after the beginning of a taxation year of the corporation that includes 28 February 2000 or 17 October 2000 and ends 60 days after the end of that year, and the corporation does not elect under section 1106.0.3, the following rules apply:

(a)  the portion of the dividend that is in respect of capital gains of the corporation from dispositions of property by the corporation in the year and in the particular period that began at the beginning of the year and ended on 27 February 2000 is deemed to be that proportion of the dividend that the corporation’s net capital gains from dispositions of property in the particular period is of the total of the corporation’s net capital gains from dispositions of property in each of the particular periods referred to in this paragraph;

(b)  the portion of the dividend that is in respect of capital gains of the corporation from dispositions of property by the corporation in the year and in the particular period that began on 28 February 2000 and ended on 17 October 2000 is deemed to be that proportion of the dividend that the corporation’s net capital gains from dispositions of property in the particular period is of the total of the corporation’s net capital gains from dispositions of property in each of the particular periods referred to in this paragraph; and

(c)  the portion of the dividend that is in respect of capital gains of the corporation from dispositions of property by the corporation in the year and in the particular period that began on 18 October 2000 and ended at the end of the year, is deemed to be that proportion of the dividend that the corporation’s net capital gains from dispositions of property in the particular period is of the total of the corporation’s net capital gains from dispositions of property in each of the particular periods referred to in this paragraph.

In this section and in section 1106.0.4, net capital gains from dispositions of property in a particular period means the amount by which the corporation’s capital gains from dispositions of property in a particular period exceeds the corporation’s capital losses from dispositions of property in that period.

2003, c. 2, s. 289.