I-3 - Taxation Act

Section 546.1 Disposition versions

2006-03-01

546.1. For the purposes of section 194, where the income of the predecessor corporation at the end of its taxation year ending immediately before the amalgamation, in this section referred to as its “last taxation year”, from a farming business and the income of the new corporation from a farming business are computed in accordance with the cash method, the new corporation is deemed to have purchased, in its first taxation year and in the course of carrying on that farming business, the property described in its inventory in connection with that business at the commencement of its first taxation year that was property described in the inventory in connection with the farming business of the predecessor corporation at the end of its last taxation year, for an amount equal to the aggregate of all amounts each of which is an amount included, by reason of subparagraph b or c of the second paragraph of section 194, in computing the income from a farming business of the predecessor corporation for its last taxation year.

1993, c. 16, s. 216; 1997, c. 3, s. 71.