I-3 - Taxation Act

Section 785.2 Disposition versions

2019-06-19

785.2. For the purposes of this Part, where a taxpayer ceases to be resident in Canada at a particular time, the following rules apply:

(a)  if the taxpayer is a corporation and paragraph a of subsection 4 of section 128.1 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) does not apply to the taxpayer in respect of the particular time, the taxpayer’s taxation year that would otherwise have included the particular time is deemed to have ended immediately before the particular time and a new taxation year is deemed to have begun at the particular time and to have ended at the time at which the taxpayer’s taxation year (determined for the purposes of the Income Tax Act) that includes the particular time, ended;

(a.0.1)  if the taxpayer is a trust (other than a succession that is a graduated rate estate), the taxpayer’s taxation year that would otherwise have included the particular time is deemed to have ended immediately before the particular time and a new taxation year is deemed to have begun at the particular time;

(a.0.2)  if the taxpayer is a trust that is a succession that is a graduated rate estate and paragraph a of subsection 4 of section 128.1 of the Income Tax Act does not apply to the taxpayer in respect of the particular time, the taxpayer’s taxation year that would otherwise have included the particular time is deemed to have ended immediately before the particular time and a new taxation year is deemed to have begun at the particular time;

(a.1)  if the taxpayer is an individual, other than a trust, who carries on a business at the particular time, otherwise than through an establishment in Canada, and paragraph a.1 of subsection 4 of section 128.1 of the Income Tax Act does not apply to the taxpayer in respect of the particular time, the fiscal period of the business that would otherwise have included the particular time is deemed to end immediately before that time and a new fiscal period is deemed to begin at that time;

(b)  the taxpayer is deemed to have disposed, at the time, in this subparagraph and subparagraph d referred to as the “time of disposition”, that is immediately before the time that is immediately before the particular time, of each property then owned by the taxpayer for proceeds equal to its fair market value at the time of disposition, which proceeds are deemed to have been received by the taxpayer at the time of disposition, other than, if the taxpayer is an individual,

i.  immovable property situated in Canada, a Canadian resource property or a timber resource property,

ii.  capital property used in, property included in Class 14.1 of Schedule B to the Regulation respecting the Taxation Act (chapter I-3, r. 1) in respect of or property included in the inventory of, a business carried on by the taxpayer through an establishment in Canada at the particular time,

iii.  an excluded right or interest of the taxpayer,

iv.  if the taxpayer is not a trust and was not, during the 120-month period that ends at the particular time, resident in Canada for more than 60 months, property that was owned by the taxpayer at the time the taxpayer last became resident in Canada or that was acquired by the taxpayer by inheritance or bequest after the taxpayer last became resident in Canada, and

v.  any property in respect of which the taxpayer makes an election referred to in subparagraph a of the first paragraph of section 785.2.2 for the taxation year that includes the first time, after the particular time, at which the taxpayer becomes resident in Canada;

(b.1)  despite subparagraph b, if the taxpayer is or was at any time, an employee life and health trust, the following rules apply:

i.  the taxpayer is deemed

(1)  to have disposed, at the time (in this subparagraph referred to as the “time of disposition”) that is immediately before the time that is immediately before the particular time, of each property then owned by the taxpayer for proceeds equal to its fair market value at the time of disposition, which proceeds are deemed to have been received by the taxpayer at the time of disposition, and

(2)  to have carried on a business at the time of disposition, and

ii.  each property of the taxpayer is deemed to be described in the inventory of the business referred to in subparagraph 2 of subparagraph i and to have a cost of nil at the time of disposition;

(c)  the taxpayer is deemed to have reacquired, at the particular time, each property deemed by subparagraph b or b.1 to have been disposed of by the taxpayer, at a cost equal to the proceeds of disposition of the property;

(d)  despite subparagraphs b and c, if the taxpayer is an individual, other than a trust, and the taxpayer makes a valid election under paragraph d of subsection 4 of section 128.1 of the Income Tax Act after 19 December 2006 in relation to a property described in subparagraph i or ii of subparagraph b,

i.  the taxpayer is deemed to have disposed of the property at the time of disposition for proceeds equal to its fair market value at that time and to have reacquired the property at the particular time at a cost equal to those proceeds,

ii.  the taxpayer’s income for the taxation year that includes the particular time is deemed to be the greater of that income determined without reference to this subparagraph ii and the lesser of

(1)  that income determined without reference to this section, and

(2)  that income determined without reference to subparagraph i, and

iii.  each of the taxpayer’s non-capital loss, net capital loss, restricted farm loss, farm loss and limited partnership loss for the taxation year that includes the particular time is deemed to be the lesser of that amount determined without reference to this subparagraph iii and the greater of

(1)  that amount determined without reference to this section, and

(2)  that amount determined without reference to subparagraph i;

(d.1)  if the taxpayer is deemed by subparagraph b to have disposed of a share that was acquired before 28 February 2000 under circumstances to which section 49.2 applied, the amount that would be added under paragraph f of section 255 in computing the adjusted cost base to the taxpayer of the share as a consequence of the deemed disposition, if Division VI of Chapter II of Title II of Book III were read without reference to section 49.6, shall be deducted from the taxpayer’s proceeds of disposition of the share;

(e)  (paragraph repealed);

(f)  (paragraph repealed).

Chapter V.2 of Title II of Book I applies in relation to an election made under paragraph d of subsection 4 of section 128.1 of the Income Tax Act or in relation to an election made under this section before 20 December 2006.

1995, c. 49, s. 179; 1997, c. 3, s. 71; 1997, c. 31, s. 85; 2001, c. 53, s. 260; 2003, c. 2, s. 251; 2004, c. 8, s. 155; 2005, c. 1, s. 193; 2009, c. 5, s. 336; 2011, c. 6, s. 172; 2017, c. 1, s. 240; 2019, c. 14, s. 274.

2017-02-08

785.2. For the purposes of this Part, where a taxpayer ceases to be resident in Canada at a particular time, the following rules apply:

(a)  if the taxpayer is a corporation and paragraph a of subsection 4 of section 128.1 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) does not apply to the taxpayer in respect of the particular time, the taxpayer’s taxation year that would otherwise have included the particular time is deemed to have ended immediately before the particular time and a new taxation year is deemed to have begun at the particular time and to have ended at the time at which the taxpayer’s taxation year (determined for the purposes of the Income Tax Act) that includes the particular time, ended;

(a.0.1)  if the taxpayer is a trust (other than a succession that is a graduated rate estate), the taxpayer’s taxation year that would otherwise have included the particular time is deemed to have ended immediately before the particular time and a new taxation year is deemed to have begun at the particular time;

(a.0.2)  if the taxpayer is a trust that is a succession that is a graduated rate estate and paragraph a of subsection 4 of section 128.1 of the Income Tax Act does not apply to the taxpayer in respect of the particular time, the taxpayer’s taxation year that would otherwise have included the particular time is deemed to have ended immediately before the particular time and a new taxation year is deemed to have begun at the particular time;

(a.1)  if the taxpayer is an individual, other than a trust, who carries on a business at the particular time, otherwise than through an establishment in Canada, and paragraph a.1 of subsection 4 of section 128.1 of the Income Tax Act does not apply to the taxpayer in respect of the particular time, the fiscal period of the business that would otherwise have included the particular time is deemed to end immediately before that time and a new fiscal period is deemed to begin at that time;

(b)  the taxpayer is deemed to have disposed, at the time, in this subparagraph and subparagraph d referred to as the “time of disposition”, that is immediately before the time that is immediately before the particular time, of each property then owned by the taxpayer for proceeds equal to its fair market value at the time of disposition, which proceeds are deemed to have been received by the taxpayer at the time of disposition, other than, if the taxpayer is an individual,

i.  immovable property situated in Canada, a Canadian resource property or a timber resource property,

ii.  capital property used in, incorporeal capital property in respect of or property included in the inventory of, a business carried on by the taxpayer through an establishment in Canada at the particular time,

iii.  an excluded right or interest of the taxpayer,

iv.  if the taxpayer is not a trust and was not, during the 120-month period that ends at the particular time, resident in Canada for more than 60 months, property that was owned by the taxpayer at the time the taxpayer last became resident in Canada or that was acquired by the taxpayer by inheritance or bequest after the taxpayer last became resident in Canada, and

v.  any property in respect of which the taxpayer makes an election referred to in subparagraph a of the first paragraph of section 785.2.2 for the taxation year that includes the first time, after the particular time, at which the taxpayer becomes resident in Canada;

(b.1)  despite subparagraph b, if the taxpayer is or was at any time, an employee life and health trust, the following rules apply:

i.  the taxpayer is deemed

(1)  to have disposed, at the time (in this subparagraph referred to as the “time of disposition”) that is immediately before the time that is immediately before the particular time, of each property then owned by the taxpayer for proceeds equal to its fair market value at the time of disposition, which proceeds are deemed to have been received by the taxpayer at the time of disposition, and

(2)  to have carried on a business at the time of disposition, and

ii.  each property of the taxpayer is deemed to be described in the inventory of the business referred to in subparagraph 2 of subparagraph i and to have a cost of nil at the time of disposition;

(c)  the taxpayer is deemed to have reacquired, at the particular time, each property deemed by subparagraph b or b.1 to have been disposed of by the taxpayer, at a cost equal to the proceeds of disposition of the property;

(d)  despite subparagraphs b and c, if the taxpayer is an individual, other than a trust, and the taxpayer makes a valid election under paragraph d of subsection 4 of section 128.1 of the Income Tax Act after 19 December 2006 in relation to a property described in subparagraph i or ii of subparagraph b,

i.  the taxpayer is deemed to have disposed of the property at the time of disposition for proceeds equal to its fair market value at that time and to have reacquired the property at the particular time at a cost equal to those proceeds,

ii.  the taxpayer’s income for the taxation year that includes the particular time is deemed to be the greater of that income determined without reference to this subparagraph ii and the lesser of

(1)  that income determined without reference to this section, and

(2)  that income determined without reference to subparagraph i, and

iii.  each of the taxpayer’s non-capital loss, net capital loss, restricted farm loss, farm loss and limited partnership loss for the taxation year that includes the particular time is deemed to be the lesser of that amount determined without reference to this subparagraph iii and the greater of

(1)  that amount determined without reference to this section, and

(2)  that amount determined without reference to subparagraph i;

(d.1)  if the taxpayer is deemed by subparagraph b to have disposed of a share that was acquired before 28 February 2000 under circumstances to which section 49.2 applied, the amount that would be added under paragraph f of section 255 in computing the adjusted cost base to the taxpayer of the share as a consequence of the deemed disposition, if Division VI of Chapter II of Title II of Book III were read without reference to section 49.6, shall be deducted from the taxpayer’s proceeds of disposition of the share;

(e)  (paragraph repealed);

(f)  (paragraph repealed).

Chapter V.2 of Title II of Book I applies in relation to an election made under paragraph d of subsection 4 of section 128.1 of the Income Tax Act or in relation to an election made under this section before 20 December 2006.

1995, c. 49, s. 179; 1997, c. 3, s. 71; 1997, c. 31, s. 85; 2001, c. 53, s. 260; 2003, c. 2, s. 251; 2004, c. 8, s. 155; 2005, c. 1, s. 193; 2009, c. 5, s. 336; 2011, c. 6, s. 172; 2017, c. 1, s. 240.

2011-06-06

785.2. For the purposes of this Part, where a taxpayer ceases to be resident in Canada at a particular time, the following rules apply:

(a)  if the taxpayer is a corporation and paragraph a of subsection 4 of section 128.1 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) does not apply to the taxpayer in respect of the particular time, the taxpayer’s taxation year that would otherwise have included the particular time is deemed to have ended immediately before the particular time and a new taxation year is deemed to have begun at the particular time and to have ended at the time at which the taxpayer’s taxation year (determined for the purposes of the Income Tax Act) that includes the particular time, ended;

(a.0.1)  if the taxpayer is a trust, other than a testamentary trust, the taxpayer’s taxation year that would otherwise have included the particular time is deemed to have ended immediately before the particular time and a new taxation year is deemed to have begun at the particular time;

(a.0.2)  if the taxpayer is a testamentary trust and paragraph a of subsection 4 of section 128.1 of the Income Tax Act does not apply to the taxpayer in respect of the particular time, the taxpayer’s taxation year that would otherwise have included the particular time is deemed to have ended immediately before the particular time and a new taxation year is deemed to have begun at the particular time;

(a.1)  if the taxpayer is an individual, other than a trust, who carries on a business at the particular time, otherwise than through an establishment in Canada, and paragraph a.1 of subsection 4 of section 128.1 of the Income Tax Act does not apply to the taxpayer in respect of the particular time, the fiscal period of the business that would otherwise have included the particular time is deemed to end immediately before that time and a new fiscal period is deemed to begin at that time;

(b)  the taxpayer is deemed to have disposed, at the time, in this subparagraph and subparagraph d referred to as the “time of disposition”, that is immediately before the time that is immediately before the particular time, of each property then owned by the taxpayer for proceeds equal to its fair market value at the time of disposition, which proceeds are deemed to have been received by the taxpayer at the time of disposition, other than, if the taxpayer is an individual,

i.  immovable property situated in Canada, a Canadian resource property or a timber resource property,

ii.  capital property used in, incorporeal capital property in respect of or property included in the inventory of, a business carried on by the taxpayer through an establishment in Canada at the particular time,

iii.  an excluded right or interest of the taxpayer,

iv.  if the taxpayer is not a trust and was not, during the 120-month period that ends at the particular time, resident in Canada for more than 60 months, property that was owned by the taxpayer at the time the taxpayer last became resident in Canada or that was acquired by the taxpayer by inheritance or bequest after the taxpayer last became resident in Canada, and

v.  any property in respect of which the taxpayer makes an election referred to in subparagraph a of the first paragraph of section 785.2.2 for the taxation year that includes the first time, after the particular time, at which the taxpayer becomes resident in Canada;

(b.1)  despite subparagraph b, if the taxpayer is or was at any time, an employee life and health trust, the following rules apply:

i.  the taxpayer is deemed

(1)  to have disposed, at the time (in this subparagraph referred to as the “time of disposition”) that is immediately before the time that is immediately before the particular time, of each property then owned by the taxpayer for proceeds equal to its fair market value at the time of disposition, which proceeds are deemed to have been received by the taxpayer at the time of disposition, and

(2)  to have carried on a business at the time of disposition, and

ii.  each property of the taxpayer is deemed to be described in the inventory of the business referred to in subparagraph 2 of subparagraph i and to have a cost of nil at the time of disposition;

(c)  the taxpayer is deemed to have reacquired, at the particular time, each property deemed by subparagraph b or b.1 to have been disposed of by the taxpayer, at a cost equal to the proceeds of disposition of the property;

(d)  despite subparagraphs b and c, if the taxpayer is an individual, other than a trust, and the taxpayer makes a valid election under paragraph d of subsection 4 of section 128.1 of the Income Tax Act after 19 December 2006 in relation to a property described in subparagraph i or ii of subparagraph b,

i.  the taxpayer is deemed to have disposed of the property at the time of disposition for proceeds equal to its fair market value at that time and to have reacquired the property at the particular time at a cost equal to those proceeds,

ii.  the taxpayer’s income for the taxation year that includes the particular time is deemed to be the greater of that income determined without reference to this subparagraph ii and the lesser of

(1)  that income determined without reference to this section, and

(2)  that income determined without reference to subparagraph i, and

iii.  each of the taxpayer’s non-capital loss, net capital loss, restricted farm loss, farm loss and limited partnership loss for the taxation year that includes the particular time is deemed to be the lesser of that amount determined without reference to this subparagraph iii and the greater of

(1)  that amount determined without reference to this section, and

(2)  that amount determined without reference to subparagraph i;

(d.1)  if the taxpayer is deemed by subparagraph b to have disposed of a share that was acquired before 28 February 2000 under circumstances to which section 49.2 applied, the amount that would be added under paragraph f of section 255 in computing the adjusted cost base to the taxpayer of the share as a consequence of the deemed disposition, if Division VI of Chapter II of Title II of Book III were read without reference to section 49.6, shall be deducted from the taxpayer’s proceeds of disposition of the share;

(e)  (paragraph repealed);

(f)  (paragraph repealed).

Chapter V.2 of Title II of Book I applies in relation to an election made under paragraph d of subsection 4 of section 128.1 of the Income Tax Act or in relation to an election made under this section before 20 December 2006.

1995, c. 49, s. 179; 1997, c. 3, s. 71; 1997, c. 31, s. 85; 2001, c. 53, s. 260; 2003, c. 2, s. 251; 2004, c. 8, s. 155; 2005, c. 1, s. 193; 2009, c. 5, s. 336; 2011, c. 6, s. 172.

2009-05-15

785.2. For the purposes of this Part, where a taxpayer ceases to be resident in Canada at a particular time, the following rules apply:

(a)  if the taxpayer is a corporation and paragraph a of subsection 4 of section 128.1 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) does not apply to the taxpayer in respect of the particular time, the taxpayer’s taxation year that would otherwise have included the particular time is deemed to have ended immediately before the particular time and a new taxation year is deemed to have begun at the particular time and to have ended at the time at which the taxpayer’s taxation year (determined for the purposes of the Income Tax Act) that includes the particular time, ended;

(a.0.1)  if the taxpayer is a trust, other than a testamentary trust, the taxpayer’s taxation year that would otherwise have included the particular time is deemed to have ended immediately before the particular time and a new taxation year is deemed to have begun at the particular time;

(a.0.2)  if the taxpayer is a testamentary trust and paragraph a of subsection 4 of section 128.1 of the Income Tax Act does not apply to the taxpayer in respect of the particular time, the taxpayer’s taxation year that would otherwise have included the particular time is deemed to have ended immediately before the particular time and a new taxation year is deemed to have begun at the particular time;

(a.1)  if the taxpayer is an individual, other than a trust, who carries on a business at the particular time, otherwise than through an establishment in Canada, and paragraph a.1 of subsection 4 of section 128.1 of the Income Tax Act does not apply to the taxpayer in respect of the particular time, the fiscal period of the business that would otherwise have included the particular time is deemed to end immediately before that time and a new fiscal period is deemed to begin at that time;

(b)  the taxpayer is deemed to have disposed, at the time, in this subparagraph and subparagraph d referred to as the “time of disposition”, that is immediately before the time that is immediately before the particular time, of each property then owned by the taxpayer for proceeds equal to its fair market value at the time of disposition, which proceeds are deemed to have been received by the taxpayer at the time of disposition, other than, if the taxpayer is an individual,

i.  immovable property situated in Canada, a Canadian resource property or a timber resource property,

ii.  capital property used in, incorporeal capital property in respect of or property included in the inventory of, a business carried on by the taxpayer through an establishment in Canada at the particular time,

iii.  an excluded right or interest of the taxpayer,

iv.  if the taxpayer is not a trust and was not, during the 120-month period that ends at the particular time, resident in Canada for more than 60 months, property that was owned by the taxpayer at the time the taxpayer last became resident in Canada or that was acquired by the taxpayer by inheritance or bequest after the taxpayer last became resident in Canada, and

v.  any property in respect of which the taxpayer makes an election referred to in subparagraph a of the first paragraph of section 785.2.2 for the taxation year that includes the first time, after the particular time, at which the taxpayer becomes resident in Canada;

(c)  the taxpayer is deemed to have reacquired, at the particular time, each property deemed by subparagraph b to have been disposed of by the taxpayer, at a cost equal to the proceeds of disposition of the property;

(d)  despite subparagraphs b and c, if the taxpayer is an individual, other than a trust, and the taxpayer makes a valid election under paragraph d of subsection 4 of section 128.1 of the Income Tax Act after 19 December 2006 in relation to a property described in subparagraph i or ii of subparagraph b,

i.  the taxpayer is deemed to have disposed of the property at the time of disposition for proceeds equal to its fair market value at that time and to have reacquired the property at the particular time at a cost equal to those proceeds,

ii.  the taxpayer’s income for the taxation year that includes the particular time is deemed to be the greater of that income determined without reference to this subparagraph ii and the lesser of

(1)  that income determined without reference to this section, and

(2)  that income determined without reference to subparagraph i, and

iii.  each of the taxpayer’s non-capital loss, net capital loss, restricted farm loss, farm loss and limited partnership loss for the taxation year that includes the particular time is deemed to be the lesser of that amount determined without reference to this subparagraph iii and the greater of

(1)  that amount determined without reference to this section, and

(2)  that amount determined without reference to subparagraph i;

(d.1)  if the taxpayer is deemed by subparagraph b to have disposed of a share that was acquired before 28 February 2000 under circumstances to which section 49.2 applied, the amount that would be added under paragraph f of section 255 in computing the adjusted cost base to the taxpayer of the share as a consequence of the deemed disposition, if Division VI of Chapter II of Title II of Book III were read without reference to section 49.6, shall be deducted from the taxpayer’s proceeds of disposition of the share;

(e)  (paragraph repealed);

(f)  (paragraph repealed).

Chapter V.2 of Title II of Book I applies in relation to an election made under paragraph d of subsection 4 of section 128.1 of the Income Tax Act or in relation to an election made under this section before 20 December 2006.

1995, c. 49, s. 179; 1997, c. 3, s. 71; 1997, c. 31, s. 85; 2001, c. 53, s. 260; 2003, c. 2, s. 251; 2004, c. 8, s. 155; 2005, c. 1, s. 193; 2009, c. 5, s. 336.

2006-03-01

785.2. For the purposes of this Part, where a taxpayer ceases to be resident in Canada at a particular time, the following rules apply:

(a)  where the taxpayer is a corporation or a trust,

i.  the taxpayer’s taxation year that would otherwise include the particular time is deemed to have ended immediately before the particular time and a new taxation year of the taxpayer is deemed to have begun at the particular time, and

ii.  for the purpose of determining the taxpayer’s fiscal period after the particular time, the taxpayer is deemed not to have established a fiscal period before the particular time;

(a.1)  if the taxpayer is an individual, other than a trust, and carries on a business at the particular time, otherwise than through an establishment in Canada,

i.  the fiscal period of the business that would otherwise have included the particular time is deemed to end immediately before that time and a new fiscal period is deemed to begin at that time, and

ii.  for the purpose of determining the fiscal period of the business after the particular time, the taxpayer is deemed not to have established a fiscal period for the business before the particular time;

(b)  the taxpayer is deemed to have disposed, at the time, in this paragraph and paragraph d referred to as the “time of disposition”, that is immediately before the time that is immediately before the particular time, of each property then owned by the taxpayer for proceeds equal to its fair market value at the time of disposition, which proceeds are deemed to have been received by the taxpayer at the time of disposition, other than, if the taxpayer is an individual,

i.  immovable property situated in Canada, a Canadian resource property or a timber resource property,

ii.  capital property used in, incorporeal capital property in respect of or property included in the inventory of, a business carried on by the taxpayer through an establishment in Canada at the particular time,

iii.  an excluded right or interest of the taxpayer,

iv.  if the taxpayer is not a trust and was not, during the 120-month period that ends at the particular time, resident in Canada for more than 60 months, property that was owned by the taxpayer at the time the taxpayer last became resident in Canada or that was acquired by the taxpayer by inheritance or bequest after the taxpayer last became resident in Canada, and

v.  any property in respect of which the taxpayer elects under paragraph a of section 785.2.2 for the taxation year that includes the first time, after the particular time, at which the taxpayer becomes resident in Canada;

(c)  the taxpayer is deemed to have reacquired, at the particular time, each property deemed by paragraph b to have been disposed of by the taxpayer, at a cost equal to the proceeds of disposition of the property;

(d)  notwithstanding paragraphs b and c, where the taxpayer is an individual, other than a trust, and so elects in prescribed form and manner in respect of a property described in subparagraph i or ii of paragraph b,

i.  the taxpayer is deemed to have disposed of the property at the time of disposition for proceeds equal to its fair market value at that time and to have reacquired the property at the particular time at a cost equal to those proceeds,

ii.  the taxpayer’s income for the taxation year that includes the particular time is deemed to be the greater of that income determined without reference to this subparagraph and the lesser of

(1)  that income determined without reference to this section, and

(2)  that income determined without reference to subparagraph i, and

iii.  each of the taxpayer’s non-capital loss, net capital loss, restricted farm loss, farm loss and limited partnership loss for the taxation year that includes the particular time is deemed to be the lesser of that amount determined without reference to this subparagraph and the greater of

(1)  that amount determined without reference to this section, and

(2)  that amount determined without reference to subparagraph i;

(d.1)  if the taxpayer is deemed by paragraph b to have disposed of a share that was acquired before 28 February 2000 under circumstances to which section 49.2 applied, the amount that would be added under paragraph f of section 255 in computing the adjusted cost base to the taxpayer of the share as a consequence of the deemed disposition, if Division VI of Chapter II of Title II of Book III were read without reference to section 49.6, shall be deducted from the taxpayer’s proceeds of disposition of the share;

(e)  (paragraph repealed);

(f)  (paragraph repealed).

1995, c. 49, s. 179; 1997, c. 3, s. 71; 1997, c. 31, s. 85; 2001, c. 53, s. 260; 2003, c. 2, s. 251; 2004, c. 8, s. 155; 2005, c. 1, s. 193.