I-3 - Taxation Act

Section 889 Disposition versions

2006-03-01

889. (1)  An employer who contributes to a deferred profit sharing plan or a corporation with which he does not deal at arm’s length shall include, in computing his or its income for a taxation year, the amount or value of the funds or property of a trust governed by such a plan that are appropriated to or for his or its benefit in any manner whatever in that year.

(2)  The rule provided in subsection 1 does not apply if the appropriation results from a payment for shares of the employer or corporation by the trust, or if the funds or property, or an amount equal to their value, are repaid to the trust within one year from the end of the taxation year and if it is established that the repayment has not been made as part of a series of appropriations and repayments.

1972, c. 23, s. 667; 1991, c. 25, s. 110; 1997, c. 3, s. 71.