I-3 - Taxation Act

Section 851.22.23.1 Disposition versions

2006-03-01

851.22.23.1. Where, at a particular time in a taxation year, a taxpayer that is a financial institution not resident in Canada, other than a life insurance corporation, ceases to use, in connection with a business or part of a business carried on by the taxpayer in Canada immediately before the particular time, a property that is a mark-to-market property of the taxpayer for the year or a specified debt obligation, but that is not a property that was disposed of by the taxpayer at the particular time, the following rules apply:

(a)  the taxpayer is deemed

i.  to have disposed of the property immediately before the time that was immediately before the particular time for proceeds of disposition equal to its fair market value at the time of disposition and to have received those proceeds at the time of disposition in the course of carrying on the business or the part of the business, as the case may be, and

ii.  to have reacquired the property at the particular time at a cost equal to those proceeds; and

(b)  for the purpose of determining the consequences of the disposition referred to in subparagraph i of paragraph a, section 851.22.13.2 does not apply to any payment received by the taxpayer after the particular time.

2004, c. 8, s. 166.