I-3 - Taxation Act

Section 462.11 Disposition versions

2006-03-01

462.11. For the purposes of this section and of sections 462.12 to 462.14,

(a)  “excluded consideration”, at any time, means consideration received by an individual that is

i.  indebtedness,

ii.  a share of the capital stock of a corporation, or

iii.  a right to receive indebtedness or a share of the capital stock of a corporation;

(b)  “outstanding amount” of a transferred property or loan at a particular time means

i.  in the case of a transfer of property to a corporation, the amount, if any, by which the fair market value of the property at the time of the transfer exceeds the aggregate of the fair market value, at the time of the transfer, of the consideration, other than consideration that is excluded consideration at the particular time, received by the transferor for the property, and the fair market value, at the time of receipt, of any consideration, other than consideration that is excluded consideration at the particular time, received by the transferor at or before the particular time from the corporation or from a person with whom the transferor deals at arm’s length, in exchange for excluded consideration previously received by the transferor as consideration for the property or for excluded consideration substituted for such consideration;

ii.  in the case of a loan of money or property to a corporation, the amount, if any, by which the principal amount of the loan of money at the time the loan was made, or the fair market value of the property loaned at the time the loan was made, as the case may be, exceeds the fair market value, at the time the repayment is received by the lender, of any repayment of the loan, other than a repayment that is excluded consideration at the particular time.

1987, c. 67, s. 112; 1997, c. 3, s. 71; 1999, c. 83, s. 54.