I-3 - Taxation Act

Section 935.26 Disposition versions

2009-06-04

935.26. If an arrangement that governs a trust ceases, at a particular time, to be a tax-free savings account, the following rules apply:

(a)  the trust is deemed to have disposed, immediately before the particular time, of each property held by the trust for proceeds of disposition equal to the property’s fair market value immediately before the particular time and to have acquired, at the particular time, each such property at a cost equal to that fair market value;

(b)  the trust’s last taxation year that began before the particular time is deemed to have ended immediately before the particular time; and

(c)  a taxation year of the trust is deemed to begin at the particular time.

2009, c. 15, s. 170.