I-3 - Taxation Act

Section 7.11.4 Disposition versions

2009-05-15

7.11.4. Where a trust issues a unit of the trust to a taxpayer directly in consideration of a right to enforce payment of an amount by the trust in respect of the taxpayer’s capital interest in the trust, the cost to the taxpayer of the unit is deemed to be equal to that amount where

(a)  at the time the unit is issued, the trust is neither a personal trust nor a trust prescribed for the purposes of section 688; and

(b)  the unit meets either of the following conditions:

i.  the unit is capital property and that amount is not proceeds of disposition of a capital interest in the trust, or

ii.  the unit is not capital property and subparagraph i.1 of paragraph n of section 257 does not apply in respect of that amount but would so apply if that subparagraph i.1 were read without reference to subparagraphs 1 to 3 thereof.

2003, c. 2, s. 4; 2009, c. 5, s. 21.

2006-03-01

7.11.4. Where a trust issues a unit of the trust to a taxpayer directly in consideration of a right to enforce payment of an amount by the trust in respect of the taxpayer’s capital interest in the trust, the cost to the taxpayer of the unit is deemed to be equal to that amount where

(a)  at the time the unit is issued, the trust is neither a personal trust nor a trust prescribed for the purposes of section 688; and

(b)  the unit meets either of the following conditions:

i.  the unit is capital property and subparagraph i.1 of paragraph n of section 257 applies in respect of that amount or would apply if that subparagraph i.1 were read without reference to subparagraphs 1 to 3 thereof, or

ii.  the unit is not capital property and subparagraph i.1 of paragraph n of section 257 does not apply in respect of that amount but would so apply if that subparagraph i.1 were read without reference to subparagraphs 1 to 3 thereof.

2003, c. 2, s. 4.