I-3 - Taxation Act

Section 668.1 Disposition versions

2020-09-24

668.1. Where, for the purposes of section 668, a personal trust or a trust referred to in section 53 designates an amount in respect of a beneficiary in respect of its net taxable capital gains for a taxation year (in this section and section 668.2 referred to as the “designation year”), the following rules apply:

(a)  the trust shall in its fiscal return filed under this Part for the designation year designate an amount in respect of its eligible taxable capital gains for the designation year in respect of the beneficiary equal to the amount determined in respect of the beneficiary under each of subparagraphs i and ii of paragraph b;

(b)  the beneficiary is deemed, for the purposes of sections 28, 462.8 to 462.10 and 727 to 737, as they apply for the purposes of Title VI.5 of Book IV, and Divisions III and IV of Chapter II.1 of Title I of Book V, to have disposed of a capital property referred to in subparagraph i or ii if a capital gain is determined under either of those subparagraphs in respect of the beneficiary for the beneficiary’s taxation year in which the designation year ends and to have a taxable capital gain for that taxation year

i.  from a disposition of capital property that is qualified farm or fishing property of the beneficiary equal to the amount determined by the formula

(A × B × C)/(D × E);

ii.  from a disposition of capital property that is a qualified small business corporation share of the beneficiary equal to the amount determined by the formula

(A × B × F)/(D × E);

iii.  (subparagraph repealed);

(c)  for the purposes of Title VI.5 of Book IV, the capital property referred to in paragraph b is deemed to have been disposed of by the beneficiary in the beneficiary’s taxation year in which the designation year ends.

1987, c. 67, s. 130; 1990, c. 59, s. 233; 1996, c. 39, s. 174; 1997, c. 3, s. 71; 2003, c. 2, s. 167; 2007, c. 12, s. 69; 2009, c. 15, s. 97; 2017, c. 29, s. 87; 2020, c. 16, s. 97.

2017-12-07

668.1. Where, for the purposes of section 668, a personal trust or a trust referred to in section 53 designates an amount in respect of a beneficiary in respect of its net taxable capital gains for a taxation year (in this section and section 668.2 referred to as the “designation year”), the following rules apply:

(a)  the trust shall in its fiscal return filed under this Part for the designation year designate an amount in respect of its eligible taxable capital gains for the designation year in respect of the beneficiary equal to the amount determined in respect of the beneficiary under each of subparagraphs i and ii of paragraph b;

(b)  the beneficiary is deemed, for the purposes of sections 28, 462.8 to 462.10 and 727 to 737 as they apply for the purposes of Title VI.5 of Book IV, to have disposed of the capital property referred to in subparagraph i or ii if a capital gain is determined under either of those subparagraphs in respect of the beneficiary for the beneficiary’s taxation year in which the designation year ends and to have a taxable capital gain for that taxation year

i.  from a disposition of capital property that is qualified farm or fishing property of the beneficiary equal to the amount determined by the formula

(A × B × C)/(D × E);

ii.  from a disposition of capital property that is a qualified small business corporation share of the beneficiary equal to the amount determined by the formula

(A × B × F)/(D × E);

iii.  (subparagraph repealed);

(c)  for the purposes of Title VI.5 of Book IV, the capital property referred to in paragraph b is deemed to have been disposed of by the beneficiary in the beneficiary’s taxation year in which the designation year ends.

1987, c. 67, s. 130; 1990, c. 59, s. 233; 1996, c. 39, s. 174; 1997, c. 3, s. 71; 2003, c. 2, s. 167; 2007, c. 12, s. 69; 2009, c. 15, s. 97; 2017, c. 29, s. 87.

2009-06-04

668.1. Where, for the purposes of section 668, a personal trust or a trust referred to in section 53 designates an amount in respect of a beneficiary in respect of its net taxable capital gains for a taxation year, in this section and sections 668.2 to 668.2.4 referred to as the “designation year”, the following rules apply:

(a)  the trust shall in its fiscal return under this Part for the designation year designate an amount in respect of its eligible taxable capital gains for the designation year in respect of the beneficiary equal to the amount determined in respect of the beneficiary under each of subparagraphs i to iii of paragraph b;

(b)  the beneficiary is deemed, for the purposes of sections 28, 462.8 to 462.10 and 727 to 737 as they apply for the purposes of Title VI.5 of Book IV, to have disposed of the capital property referred to in any of subparagraphs i to iii if a capital gain is determined under any of those subparagraphs in respect of the beneficiary for the beneficiary’s taxation year in which the designation year ends and to have a taxable capital gain for that taxation year

i.  from a disposition of capital property that is qualified farm property of the beneficiary equal to the amount determined by the formula

(A × B × C)/(D × E);

ii.  from a disposition of capital property that is a qualified small business corporation share of the beneficiary equal to the amount determined by the formula

(A × B × F)/(D × E);

iii.  from a disposition of a capital property that is a qualified fishing property of the beneficiary equal to the amount determined by the formula

(A × B × G)/(D × E); and

(c)  for the purposes of Title VI.5 of Book IV, the capital property referred to in paragraph b is deemed to have been disposed of by the beneficiary in the beneficiary’s taxation year in which the designation year ends.

1987, c. 67, s. 130; 1990, c. 59, s. 233; 1996, c. 39, s. 174; 1997, c. 3, s. 71; 2003, c. 2, s. 167; 2007, c. 12, s. 69; 2009, c. 15, s. 97.

2007-11-07

668.1. Where, for the purposes of section 668, a personal trust or a trust referred to in section 53 designates an amount in respect of a beneficiary in respect of its net taxable capital gains for a taxation year, in this section and section 668.2 referred to as the “designation year”, the following rules apply:

(a)  the trust shall in its fiscal return under this Part for the designation year designate an amount in respect of its eligible taxable capital gains for the designation year in respect of the beneficiary equal to the amount determined in respect of the beneficiary under each of subparagraphs i to iii of paragraph b;

(b)  the beneficiary is deemed, for the purposes of sections 28, 462.8 to 462.10 and 727 to 737 as they apply for the purposes of Title VI.5 of Book IV, to have disposed of the capital property referred to in any of subparagraphs i to iii if a capital gain is determined under any of those subparagraphs in respect of the beneficiary for the beneficiary’s taxation year in which the designation year ends and to have a taxable capital gain for that taxation year

i.  from a disposition of capital property that is qualified farm property of the beneficiary equal to the amount determined by the formula

(A × B × C) / (D × E);

ii.  from a disposition of capital property that is a qualified small business corporation share of the beneficiary equal to the amount determined by the formula

(A × B × F) / (D × E);

iii.  from a disposition of a capital property that is a qualified fishing property of the beneficiary equal to the amount determined by the formula

(A × B × G) / (D × E); and

(c)  for the purposes of Title VI.5 of Book IV, the capital property referred to in paragraph b is deemed to have been disposed of by the beneficiary in the beneficiary’s taxation year in which the designation year ends.

1987, c. 67, s. 130; 1990, c. 59, s. 233; 1996, c. 39, s. 174; 1997, c. 3, s. 71; 2003, c. 2, s. 167; 2007, c. 12, s. 69.

2006-03-01

668.1. Where, for the purposes of section 668, a personal trust or a trust referred to in section 53 designates an amount in respect of a beneficiary in respect of its net taxable capital gains for a taxation year, in this section and section 668.2 referred to as the “designation year”, the following rules apply:

(a)  the trust shall in its fiscal return under this Part for the designation year designate an amount in respect of its eligible taxable capital gains for the designation year in respect of the beneficiary equal to the amount determined in respect of the beneficiary under each of subparagraphs i and ii of paragraph b;

(b)  the beneficiary is deemed, for the purposes of sections 28, 462.8 to 462.10 and 727 to 737 as they apply for the purposes of Title VI.5 of Book IV, to have a taxable capital gain for the beneficiary’s taxation year in which the designation year ends:

i.  from a disposition of capital property that is qualified farm property of the beneficiary equal to the amount determined by the formula

(A × B × C) / (D × E);

ii.  from a disposition of capital property that is a qualified small business corporation share of the beneficiary equal to the amount determined by the formula

(A × B × F) / (D × E);

(c)  for the purposes of Title VI.5 of Book IV, the capital property referred to in paragraph b is deemed to have been disposed of by the beneficiary in the beneficiary’s taxation year in which the designation year ends.

1987, c. 67, s. 130; 1990, c. 59, s. 233; 1996, c. 39, s. 174; 1997, c. 3, s. 71; 2003, c. 2, s. 167.