I-3 - Taxation Act

Section 1129.0.10.4 Disposition versions

2007-11-07

1129.0.10.4. Every taxpayer who is deemed to have paid an amount to the Minister, under section 1029.8.10 or 1029.8.16.1.4, on account of the taxpayer’s tax payable under Part I for a particular taxation year shall pay, for a subsequent taxation year, a tax equal to the amount determined in the second paragraph, where

(a)  a particular property is acquired by the taxpayer from a person or partnership in the particular taxation year;

(b)  the cost of the particular property was a qualified expenditure to the taxpayer;

(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.3 or II.3.0.1 of Chapter III.1 of Title III of Book IX of Part I for the particular taxation year; and

(d)  in the subsequent taxation year and after 23 February 1998, the taxpayer 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 has paid to the Minister under this section for a taxation year preceding the subsequent taxation year, in relation to the particular property:

(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.3 or II.3.0.1 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 taxpayer, 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; 2007, c. 12, s. 229.

2006-03-01

1129.0.10.4. Every taxpayer who is deemed to have paid an amount to the Minister, under section 1029.8.10, on account of the taxpayer’s tax payable under Part I for a particular taxation year shall pay, for a subsequent taxation year, a tax equal to the amount determined in the second paragraph, where

(a)  a particular property is acquired by the taxpayer from a person or partnership in the particular taxation year;

(b)  the cost of the particular property was a qualified expenditure to the taxpayer;

(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.3 of Chapter III.1 of Title III of Book IX of Part I for the particular taxation year; and

(d)  in the subsequent taxation year and after 23 February 1998, the taxpayer 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 has paid to the Minister under this section for a taxation year preceding the subsequent taxation year, in relation to the particular property:

(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.3 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 taxpayer, 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.