I-3 - Taxation Act

Section 7.11.5 Disposition versions

2006-03-01

7.11.5. Where at a particular time a taxpayer’s capital interest in a trust includes a right to enforce payment of an amount by the trust, the amount shall be added at the particular time to the cost otherwise determined to the taxpayer of the capital interest where

(a)  immediately after the particular time, the taxpayer disposes of the capital interest;

(b)  as a consequence of the disposition, the right to enforce payment of the amount is acquired by another person or partnership; and

(c)  if the right to enforce payment of the amount had been satisfied by a payment to the taxpayer by the trust, there would have been no disposition of that right for the purposes of this Part by reason of the application of subparagraph e of the second paragraph of section 248.

2003, c. 2, s. 4.