I-3 - Taxation Act

Section 862 Disposition versions

2006-03-01

862. Where the trustee of a trust governed by a profit sharing plan so elects in prescribed form and prescribed manner in a taxation year ending after 1973, the trust is deemed to have disposed, on the day indicated by the trustee, of any capital property owned by it and to have reacquired it immediately for proceeds or, as the case may be, at a cost equal to the amount, indicated by the trustee, situated between the adjusted cost base to the trust for the property on that day and its fair market value on the same day, or equal to such cost or such value.

If the trust was governed by a profit sharing plan on 31 December 1971, such election is valid only if the trustee has made the election referred to in section 861.

1975, c. 22, s. 221; 2001, c. 53, s. 179.