I-3 - Taxation Act

Section 487.1 Disposition versions

2006-03-01

487.1. A corporation carrying on a personal services business or an individual is deemed to receive a benefit in a taxation year equal to the amount computed under section 487.2 when a person or partnership contracts a debt because of services provided or to be provided by the corporation or of the individual’s previous, current or intended office or employment.

For the purposes of the first paragraph, a debt is deemed to have been contracted because of an individual’s office or employment, or because of services provided by a corporation that carries on a personal services business, if it is reasonable to conclude that, but for the individual’s previous, current or intended office or employment, or the services provided or to be provided by the corporation,

(a)  the terms of the debt would have been different; or

(b)  the debt would not have been contracted.

1978, c. 26, s. 82; 1983, c. 44, s. 26; 1994, c. 22, s. 191; 1997, c. 3, s. 71; 1997, c. 14, s. 79; 2001, c. 53, s. 74.