I-3 - Taxation Act

Section 93.17 Disposition versions

2019-06-19

93.17. Where at a particular time in a taxation year a taxpayer has or may become entitled to receive a particular amount on account of capital in respect of a business that is or was carried on by the taxpayer, the taxpayer is deemed to dispose, at that time, of goodwill in respect of the business for proceeds of disposition equal to the amount by which the particular amount exceeds the aggregate of all outlays or expenses that were made or incurred by the taxpayer for the purpose of obtaining the particular amount and that were not otherwise deductible in computing the taxpayer’s income, if, but for this section, the following conditions were satisfied:

(a)  for the purposes of this Part, the particular amount is not included in computing the taxpayer’s income or deducted in computing any balance of undeducted outlays, expenses or other amounts for the taxation year or a preceding taxation year;

(b)  the particular amount does not reduce the cost or capital cost of a property or the amount of an outlay or expense; and

(c)  the particular amount is not included in computing any gain or loss of the taxpayer from a disposition of a capital property.

2019, c. 14, s. 74.