I-3 - Taxation Act

Section 725.5.8 Disposition versions

2022-06-08

725.5.8. Where, because of section 725.5.7, this section applies in respect of a taxpayer’s right to acquire a security under an agreement, the following rules apply:

(a)  no qualifying person may deduct, in computing its income for a taxation year, an amount (other than a designated amount described in subsection 1.2 of section 110 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) in respect of the payment referred to in paragraph c of section 725.5.7; and

(b)  section 725.2 applies, in respect of the right, without reference to its paragraph b.1.

2022, c. 23, s. 42.