I-3 - Taxation Act

Section 93.4 Disposition versions

2017-02-08

93.4. For the purposes of subparagraph i of subparagraph e of the first paragraph of section 93, where, at a particular time, a taxpayer is subject to a loss restriction event and, within the 12-month period that ended immediately before that time, the taxpayer, a partnership of which the taxpayer was a majority-interest partner or a trust of which the taxpayer was a majority-interest beneficiary, within the meaning of section 21.0.1, acquired depreciable property that was not used, or acquired for use, by the taxpayer, partnership or trust in a business that was carried on by it immediately before the 12-month period began,

(a)  the property is deemed, subject to subparagraph b, to have been acquired by the taxpayer, partnership or trust immediately after the particular time and not to have been acquired by it before that time; and

(b)  where the property was disposed of by the taxpayer, partnership or trust before the particular time and was not reacquired by it before that time, the property is deemed to have been acquired by it immediately before the property was disposed of.

However, the first paragraph does not apply in the case of an acquisition of property that was owned by the taxpayer, partnership or trust or by a person that would, but for the definition of “controlled” in section 21.0.1, have been affiliated with the taxpayer throughout the period that began immediately before the 12-month period referred to in the first paragraph and ended at the time the property was acquired by the taxpayer, partnership or trust.

1989, c. 77, s. 16; 1997, c. 3, s. 71; 2000, c. 5, s. 33; 2001, c. 53, s. 260; 2017, c. 1, s. 88.

2006-03-01

93.4. For the purposes of subparagraph i of subparagraph e of the first paragraph of section 93, where control of a corporation has been acquired at a particular time by a person or group of persons and, within the 12-month period that ended immediately before that time, the corporation or a partnership of which it was a majority-interest partner acquired depreciable property that was not used, or acquired for use, by the corporation or partnership in a business that was carried on by it immediately before the 12-month period began,

(a)  the property is, subject to subparagraph b, deemed to have been acquired by the corporation or partnership immediately after the particular time and not to have been acquired by it before the particular time; and

(b)  where the property was disposed of by the corporation or partnership before the particular time and was not reacquired by it before that time, the property is deemed to have been acquired by the corporation or partnership immediately before the property was disposed of.

However, the first paragraph does not apply in the case of an acquisition of property that was owned by the corporation or partnership or by a person that would, but for the definition of “controlled” in section 21.0.1, have been affiliated with the corporation throughout the period that began immediately before the 12-month period referred to in the first paragraph began and ended at the time the property was acquired by the corporation or partnership.

1989, c. 77, s. 16; 1997, c. 3, s. 71; 2000, c. 5, s. 33; 2001, c. 53, s. 260.