I-3 - Taxation Act

Section 851.22.0.2 Disposition versions

2020-09-24

851.22.0.2. The following rules apply in respect of a qualifying transfer:

(a)  the last taxation year of the funds that began before the transfer time is deemed to have ended at the transfer time and a new taxation year of the transferee is deemed to have begun immediately after the transfer time;

(b)  no amount in respect of a non-capital loss, net capital loss, restricted farm loss, farm loss or limited partnership loss of a fund for a taxation year that began before the transfer time is deductible in computing the taxable income of any of the funds for a taxation year that begins after the transfer time;

(c)  each beneficiary’s interest in the transferor is deemed to have been disposed of at the transfer time for proceeds of disposition, and each beneficiary’s interest in the transferee received in the qualifying transfer is deemed to have been acquired at a cost, equal to the cost amount to the beneficiary of the interest in the transferor immediately before the transfer time;

(d)  any amount determined under sections 851.17 and 851.18 in respect of a policyholder’s interest in the transferor is deemed

i.  to have been charged, transferred or paid in respect of the policyholder’s interest in the transferee that is acquired on the qualifying transfer, and

ii.  to not have been charged, transferred or paid in respect of the policyholder’s interest in the transferor; and

(e)  sections 851.20 to 851.22 do not apply in respect of any disposition of an interest in the transferor arising on the qualifying transfer.

2020, c. 16, s. 128.