I-3 - Taxation Act

Section 418.39 Disposition versions

2015-10-26

418.39. In this division,

(a)  the expression “at-risk amount” of a taxpayer in respect of the taxpayer’s partnership interest has the meaning that would be assigned by section 613.2 if paragraph a of section 613.3 were read as follows:

“(a) the aggregate of all amounts each of which is an amount owing at the particular time to the partnership, or to a person or partnership not dealing at arm’s length with the partnership, by the taxpayer or by a person or partnership not dealing at arm’s length with the taxpayer, other than an amount that is

i. any amount deducted under subparagraph i.3 of paragraph l of section 257 in computing the adjusted cost base, or under Title VIII of Book VI in computing the cost, to the taxpayer of the taxpayer’s partnership interest at that time, or

ii. any amount owing by the taxpayer to a person in respect of which the taxpayer is a subsidiary wholly-owned corporation or where the taxpayer is a trust, to a person that is the sole beneficiary of the taxpayer; and”;

(a.1)  the expression “limited partner” of a partnership has the meaning assigned by section 613.6;

(b)  a reference to a taxpayer who is a member of a particular partnership shall include a reference to another partnership that is a member of the particular partnership;

(c)  a taxpayer’s share of Canadian development expenses or Canadian oil and gas property expenses incurred by a partnership in a fiscal period in respect of which the taxpayer has elected in respect of the share under paragraph d of section 408 or paragraph b of section 418.2, as the case may be, is deemed to be nil.

For the purposes of the definition of “limited partner” of a partnership in subparagraph a.1 of the first paragraph, the definition of “exempt interest” in sections 613.7 and 613.8 is to be read as if “25 February 1986”, “26 February 1986”, “1 January 1987”, “12 June 1986” and “final prospectus, preliminary prospectus, registration statement” wherever they appear in that definition were replaced by “17 June 1987”, “18 June 1987”, “1 January 1988”, “18 June 1987” and “final prospectus, preliminary prospectus, registration statement, offering memorandum or notice that is required to be filed before any distribution of securities may commence”, respectively.

1990, c. 59, s. 166; 1994, c. 22, s. 155; 1997, c. 3, s. 71; 2015, c. 24, s. 74.

2006-03-01

418.39. In this division,

(a)  the expressions “at-risk amount” of a taxpayer in respect of his partnership interest and “limited partner” of a partnership have the meaning assigned by sections 613.2 and 613.6, respectively;

(b)  a reference to a taxpayer who is a member of a particular partnership shall include a reference to another partnership that is a member of the particular partnership;

(c)  a taxpayer’s share of Canadian development expenses or Canadian oil and gas property expenses incurred by a partnership in a fiscal period in respect of which the taxpayer has elected in respect of the share under paragraph d of section 408 or paragraph b of section 418.2, as the case may be, is deemed to be nil.

For the purposes of the definition of the expression “limited partner” of a partnership in subparagraph a of the first paragraph, the definition of “exempt interest” in sections 613.7 and 613.8 shall read as if the references therein to “25 February 1986”, “26 February 1986”, “1 January 1987”, “12 June 1986” and “final prospectus, preliminary prospectus, registration statement” were references to “17 June 1987”, “18 June 1987”, “1 January 1988”, “18 June 1987” and “final prospectus, preliminary prospectus, registration statement, offering memorandum or notice that is required to be filed before any distribution of securities may commence”, respectively.

1990, c. 59, s. 166; 1994, c. 22, s. 155; 1997, c. 3, s. 71.