I-3 - Taxation Act

Section 418.31.1 Disposition versions

2006-03-01

418.31.1. Where in a taxation year an original owner of Canadian resource properties disposes of all or substantially all of his Canadian resource properties in circumstances in which section 418.18, 418.19 or 418.21 applies, the following rules apply:

(a)  the amount determined in respect of the original owner for the year for the purposes of paragraph b.1 of section 398 and subparagraph 1 of subparagraph ii of paragraph b.1 of section 418.31 is equal to the lesser of

i.  the aggregate of all amounts each of which is the amount by which

(1)  the amount deducted under paragraph b of section 418.31 in respect of a disposition in the year by the original owner, exceeds

(2)  the amount designated by the original owner in prescribed form filed with the Minister within six months after the end of the year in respect of an amount determined under subparagraph l, and

ii.  the aggregate of

(1)  the amount deducted by the original owner for the year under section 400 or 401, and

(2)  the amount that would be determined in respect of the original owner for the year under paragraph d of section 330 if the aggregate last referred to therein were not taken into account;

(b)  the amount determined in respect of the original owner for the year for the purposes of paragraph a.1 of section 411 and subparagraph 1 of subparagraph ii of paragraph c.1 of section 418.31 is equal to the lesser of

i.  the aggregate of all amounts each of which is the amount by which

(1)  the amount deducted under paragraph c of section 418.31 in respect of a disposition in the year by the original owner, exceeds

(2)  the amount designated by the original owner in prescribed form filed with the Minister within six months after the end of the year in respect of an amount determined under subparagraph 1, and

ii.  the aggregate of

(1)  the amount deducted by the original owner for the year under section 413 or 414, and

(2)  the amount that would be determined in respect of the original owner for the year under paragraph e of section 330 if the aggregate last referred to therein were not taken into account;

(c)  the amount determined in respect of the original owner for the year for the purposes of paragraph a.1 of section 418.5 and subparagraph 1 of subparagraph ii of paragraph d.1 of section 418.31 is equal to the lesser of

i.  the aggregate of all amounts each of which is the amount by which

(1)  the amount deducted under paragraph d of section 418.31 in respect of a disposition in the year by the original owner, exceeds

(2)  the amount designated by the original owner in prescribed form filed with the Minister within six months after the end of the year in respect of an amount determined under subparagraph 1, and

ii.  the aggregate of

(1)  the amount deducted by the original owner for the year under section 418.7, and

(2)  the amount that would be determined in respect of the original owner for the year under section 418.12 if the aggregate last referred to therein were not taken into account.

1993, c. 16, s. 173.