I-3 - Taxation Act

Section 1129.0.10.3 Disposition versions

2006-12-06

1129.0.10.3. Every taxpayer who is a member of a partnership and is deemed to have paid an amount to the Minister, under subparagraph c or g of the first paragraph of section 1029.8, in respect of that partnership, on account of the taxpayer’s tax payable under Part I for a particular taxation year in which a particular fiscal period of the partnership ends shall pay, for the taxation year in which a subsequent fiscal period ends, a tax equal to the amount determined in the second paragraph, where

(a)  a particular property is acquired by the partnership from a person or partnership in the particular fiscal period;

(b)  the cost of the particular property was a portion of the consideration paid by the partnership under a contract referred to in one of those subparagraphs;

(c)  the cost of the particular property is included in an amount, a percentage of which can reasonably be considered to be included in the amount that the taxpayer is deemed to have paid to the Minister under Division II of Chapter III.1 of Title III of Book IX of Part I for the particular taxation year in which the particular fiscal period ends; and

(d)  in the subsequent fiscal period and after 23 February 1998, the partnership begins to use for commercial purposes, or disposes of without having used for commercial purposes, the particular property or another property that incorporates the particular property.

The amount to which the first paragraph refers is the amount by which the lesser of the following amounts exceeds any amount of tax that the taxpayer would have been required to pay to the Minister under this section for a taxation year preceding the taxation year in which the subsequent fiscal period ends, in relation to the particular property, if the taxpayer’s share of the income or loss of the partnership for the fiscal period in which the preceding taxation year ends and the partnership’s income or loss for that fiscal period had been the same as those for the subsequent fiscal period:

(a)  the amount that can reasonably be considered to be included in the amount that the taxpayer is deemed to have paid to the Minister under Division II of Chapter III.1 of Title III of Book IX of Part I for the particular taxation year, in relation to the particular property; and

(b)  the product obtained by multiplying the percentage referred to in subparagraph c of the first paragraph by

i.  if the particular property or the other property is disposed of to a person who deals at arm’s length with the partnership, the proceeds of disposition of that property, or

ii.  in any other case, the fair market value of the particular property or the other property at the time it begins to be used for commercial purposes or is disposed of.

2001, c. 53, s. 252; 2006, c. 36, s. 222.

2006-03-01

1129.0.10.3. Every taxpayer who is a member of a partnership and is deemed to have paid an amount to the Minister, under subparagraph c or g of the first paragraph of section 1029.8, in respect of that partnership, on account of the taxpayer’s tax payable under Part I for a particular taxation year in which a particular fiscal period of the partnership ends shall pay, for the taxation year in which a subsequent fiscal period ends, a tax equal to the amount determined in the second paragraph, where

(a)  a particular property is acquired by the partnership from a person or partnership in the particular fiscal period;

(b)  the cost of the particular property was a portion of the consideration paid by the partnership under a contract referred to in one of those subparagraphs;

(c)  the cost of the particular property is included in an amount, a percentage of which can reasonably be considered to be included in the amount that the taxpayer is deemed to have paid to the Minister under Division II of Chapter III.1 of Title III of Book IX of Part I for the particular taxation year in which the particular fiscal period ends; and

(d)  in the subsequent fiscal period and after 23 February 1998, the partnership begins to use for commercial purposes, or disposes of without having used for commercial purposes, the particular property or another property that incorporates the particular property.

The amount to which the first paragraph refers is the amount by which the lesser of the following amounts exceeds any amount of tax that the taxpayer would have been required to pay to the Minister under this section for a taxation year preceding the taxation year in which the subsequent fiscal period ends, in relation to the particular property, if the taxpayer’s share of the income or loss of the partnership for the fiscal period in which the preceding taxation year ends had been the same as the taxpayer’s share for the subsequent fiscal period:

(a)  the amount that can reasonably be considered to be included in the amount that the taxpayer is deemed to have paid to the Minister under Division II of Chapter III.1 of Title III of Book IX of Part I for the particular taxation year, in relation to the particular property; and

(b)  the product obtained by multiplying the percentage referred to in subparagraph c of the first paragraph by

i.  if the particular property or the other property is disposed of to a person who deals at arm’s length with the partnership, the proceeds of disposition of that property, or

ii.  in any other case, the fair market value of the particular property or the other property at the time it begins to be used for commercial purposes or is disposed of.

2001, c. 53, s. 252.