I-3 - Taxation Act

Section 517.5.4 Disposition versions

2017-12-07

517.5.4. (Repealed).

2017, c. 1, s. 137; 2017, c. 29, s. 75.

2017-02-08

517.5.4. For the purposes of the definition of “primary and manufacturing sectors corporation” in the first paragraph of section 517.5.3, the following rules apply:

(a)  an asset of a particular corporation, other than an investment, is deemed to be used in the primary and manufacturing sectors by the particular corporation at the time of the disposition of a share of its capital stock if the prescribed proportion of primary and manufacturing sectors activities of the particular corporation, for its last two taxation years that ended before the disposition of the share and that have at least 183 days, is at least 50%; and

(b)  an asset of a particular corporation that is an investment in another corporation is deemed to be an asset of the particular corporation used in the primary and manufacturing sectors by the particular corporation at the time of the disposition of a share of the capital stock of the particular corporation if, at that time, the other corporation is a primary and manufacturing sectors corporation because of subparagraph a.

For the purposes of subparagraph a of the first paragraph, where a taxation year described in that subparagraph begins before 1 January 2017, the rule according to which the prescribed proportion of primary and manufacturing sectors activities of the particular corporation for that year must be at least 50% is replaced by a rule according to which the proportion of manufacturing and processing activities of the particular corporation, within the meaning of section 771.1, for that year must be at least 50%.

In this section, “investment” of a particular corporation in another corporation means a share of the capital stock of the other corporation or a debt of the other corporation that belongs to the particular corporation.

2017, c. 1, s. 137.