I-3 - Taxation Act

Section 861 Disposition versions

2006-03-01

861. Notwithstanding section 66 of the Act respecting the application of the Taxation Act (chapter I-4), where the trustee of a trust governed by a profit sharing plan so elects before 1976, in prescribed manner, the trust is deemed to have disposed on 31 December 1971 of each property owned by the trust at that time and to have received proceeds therefrom equal to the fair market value thereof on such date and to have reacquired it for the same amount on 1 January 1972.

Such presumption shall be valid only if the trustee has, before 1976, allocated to the beneficiaries under the plan all the capital gains and capital losses resulting from such deemed dispositions.

1975, c. 22, s. 221; 1994, c. 22, s. 284.