I-3 - Taxation Act

Section 165 Disposition versions

2006-03-01

165. For the purposes of section 164:

(a)  the word “land”, except to the extent that it is used for the provision of parking facilities for a fee or charge, does not include:

i.  any building or other structure affixed to land;

ii.  the land subjacent to any property described in subparagraph i; or

iii.  the land immediately contiguous to the land contemplated in subparagraph ii that is a parking area, driveway, yard, garden or similar land necessary for the use of any property described in subparagraph i;

(b)  the expression “property taxes” does not include an income or profits tax or a tax relating to the transfer of property;

(c)  the expression “interest on debt relating to the acquisition of land” includes interest paid or payable in the year in respect of borrowed money that may reasonably be considered, having regard to all the circumstances:

i.  to be borrowed money used in respect of the acquisition of land, even if it cannot be identified with particular land; or

ii.  to have been used to assist, directly or indirectly, any person with whom the taxpayer does not deal at arm’s length, a corporation of which the taxpayer is a specified shareholder or a partnership of which the taxpayer’s share of any income or loss is 10% or more, to acquire land to be used or held by that person, corporation or partnership otherwise than as provided for in subparagraph a or b of the first paragraph of section 164, except where the assistance is in the form of a loan to that person, corporation or partnership and a reasonable rate of interest thereon is charged by the taxpayer.

1972, c. 23, s. 153; 1975, c. 22, s. 21; 1990, c. 59, s. 93; 1997, c. 3, s. 71.