I-3 - Taxation Act

Section 6.2 Disposition versions

2017-12-07

6.2. For the purposes of this Part, if at a particular time a taxpayer (other than a corporation that is a foreign affiliate of a taxpayer resident in Canada and that did not carry on a business in Canada in its last taxation year beginning before the particular time) is subject to a loss restriction event and, where the taxpayer is a corporation or a succession that is a graduated rate estate, subsection 4 of section 249 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) does not apply to the taxpayer in respect of the loss restriction event, the following rules apply:

(a)  the taxpayer’s taxation year that would, but for this subparagraph, have included the particular time is deemed to have ended immediately before that time; and

(b)  a new taxation year of the taxpayer is deemed to begin at the particular time and, where the taxpayer is a corporation, end at the time at which the taxpayer’s taxation year (determined for the purposes of the Income Tax Act) that includes the particular time, ends;

(c)  (subparagraph repealed).

Chapter V.2 applies in relation to an election made under paragraph b of subsection 4 of section 249 of the Income Tax Act.

1989, c. 77, s. 3; 1993, c. 16, s. 5; 1995, c. 49, s. 5; 1996, c. 39, s. 12; 1997, c. 3, s. 71; 2004, c. 8, s. 5; 2009, c. 5, s. 11; 2017, c. 1, s. 64; 2017, c. 29, s. 17.

2017-02-08

6.2. For the purposes of this Part, if at a particular time a taxpayer (other than a corporation that is a foreign affiliate of a taxpayer resident in Canada and that did not carry on a business in Canada in its last taxation year beginning before the particular time) is subject to a loss restriction event and, where the taxpayer is a corporation or a succession that is a graduated rate estate, subsection 4 of section 249 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) does not apply to the taxpayer in respect of the loss restriction event, the following rules apply:

(a)  subject to subparagraph c, the taxpayer’s taxation year that would, but for this subparagraph, have included the particular time is deemed to have ended immediately before that time;

(b)  subject to subparagraph c, a new taxation year of the taxpayer is deemed to begin at the particular time and, where the taxpayer is a corporation, end at the time at which the taxpayer’s taxation year (determined for the purposes of the Income Tax Act) that includes the particular time, ends; and

(c)  subject to section 779, Chapter I of Title I.1 of Book VI and paragraph a of sections 851.22.23 and 999.1, and despite the definition of “taxation year” in section 1 and section 6.1, if a taxpayer that is a trust (other than a succession that is a graduated rate estate) has made an election under paragraph b of subsection 4 of section 249 of the Income Tax Act in relation to the taxpayer’s taxation year that would, but for this section, have been its last taxation year that ends before the particular time, and that would, but for this subparagraph, have ended within the seven-day period that ends immediately before that time, that taxation year is, except if the taxpayer is subject to a loss restriction event within that period, deemed to end immediately before that time.

Chapter V.2 applies in relation to an election made under paragraph b of subsection 4 of section 249 of the Income Tax Act.

1989, c. 77, s. 3; 1993, c. 16, s. 5; 1995, c. 49, s. 5; 1996, c. 39, s. 12; 1997, c. 3, s. 71; 2004, c. 8, s. 5; 2009, c. 5, s. 11; 2017, c. 1, s. 64.

2009-05-15

6.2. For the purposes of this Part, if at a particular time control of a corporation (other than a corporation that is a foreign affiliate of a taxpayer resident in Canada and that did not carry on a business in Canada in its last taxation year beginning before the particular time) has been acquired by a person or group of persons and subsection 4 of section 249 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) does not apply to the corporation in respect of the acquisition of control, the following rules apply:

(a)  the corporation’s taxation year that would, but for this subparagraph, have included the particular time is deemed to have ended immediately before that time; and

(b)  a new taxation year of the corporation is deemed to begin at the particular time and end at the time at which the corporation’s taxation year (determined for the purposes of the Income Tax Act) that includes the particular time, ends.

Chapter V.2 applies in relation to an election made under paragraph c of subsection 4 of section 249 of the Income Tax Act.

1989, c. 77, s. 3; 1993, c. 16, s. 5; 1995, c. 49, s. 5; 1996, c. 39, s. 12; 1997, c. 3, s. 71; 2004, c. 8, s. 5; 2009, c. 5, s. 11.

2006-03-01

6.2. Where, at any time, control of a corporation, other than a corporation that is a foreign affiliate of a taxpayer resident in Canada and that did not carry on a business in Canada at any time in its last taxation year commencing before that time, has been acquired by a person or group of persons, the following rules apply for the purposes of this Part:

(a)  subject to paragraph c, the taxation year of the corporation that would, but for this paragraph, have included that time is deemed to have ended immediately before that time;

(b)  a new taxation year of the corporation is deemed to have commenced at that time;

(c)  subject to section 779, Chapter I of Title I.1 of Book VI and paragraph a of sections 851.22.23 and 999.1, and notwithstanding the definition of “taxation year” in section 1 and sections 5 and 6.1, where the taxation year of the corporation that would, but for this section, have been its last taxation year that ended before that time would, but for this paragraph, have ended within the seven- day period that ended immediately before that time, that taxation year is, except where control of the corporation was acquired by a person or group of persons within that period, deemed to end immediately before that time where the corporation so elects in its fiscal return under this Part for that taxation year; and

(d)  for the purpose of determining the corporation’s fiscal period after that time, the corporation is deemed not to have established a fiscal period before that time.

1989, c. 77, s. 3; 1993, c. 16, s. 5; 1995, c. 49, s. 5; 1996, c. 39, s. 12; 1997, c. 3, s. 71; 2004, c. 8, s. 5.