I-3 - Taxation Act

Section 333.13 Disposition versions

2020-09-24

333.13. If section 333.8 or 333.9 applies in respect of a restrictive covenant, the following rules apply:

(a)  the amount referred to in paragraph f of section 333.8 is to be added in computing the amount received or receivable by the vendors as consideration for the disposition of the right referred to in paragraph b of section 333.8; and

(b)  the amount that can reasonably be regarded as being in part consideration received or receivable for a restrictive covenant to which subparagraph 2 of subparagraph ii of subparagraph b or c of the first paragraph of section 333.9 applies is to be added in computing the consideration that is received or receivable by each taxpayer who disposes of shares of the target corporation, or of shares of the family corporation, as the case may be, to the extent of the portion of the consideration that is received or receivable by that taxpayer.

2009, c. 5, s. 117; 2015, c. 21, s. 164; 2020, c. 16, s. 58.

2015-10-21

333.13. If section 333.8 or 333.9 applies in respect of a restrictive covenant, the following rules apply:

(a)  the amount referred to in paragraph f of section 333.8 is to be added in computing the amount received or receivable by the vendors as consideration for the disposition of the right or interest referred to in paragraph b of section 333.8; and

(b)  the amount that can reasonably be regarded as being in part consideration received or receivable for a restrictive covenant to which subparagraph 2 of subparagraph ii of subparagraph b or c of the first paragraph of section 333.9 applies is to be added in computing the consideration that is received or receivable by each taxpayer who disposes of shares of the target corporation, or of shares of the family corporation, as the case may be, to the extent of the portion of the consideration that is received or receivable by that taxpayer.

2009, c. 5, s. 117; 2015, c. 21, s. 164.

2009-05-15

333.13. Sections 333.9 to 333.11 do not apply in respect of a taxpayer’s grant of a restrictive covenant if one of the results of not applying section 421 to the consideration received or receivable in respect of the restrictive covenant would be that paragraph a of section 28 would not apply to consideration that would, but for sections 333.5 to 333.16, be included in computing a taxpayer’s income from a source that is an office or employment or a business or property.

2009, c. 5, s. 117.