I-3 - Taxation Act

Section 52 Disposition versions

2006-03-01

52. If rights of the employee under the agreement referred to in section 48 have, by one or more transactions between persons not dealing at arm’s length, become vested in a particular person who transfers or disposes of the rights to another person with whom the particular person is dealing at arm’s length, the employee is deemed, subject to the second paragraph, to receive because of the employee’s office or employment, in the taxation year in which the particular person made the transfer or disposition, a benefit equal to the amount by which the value of the consideration for the transfer or disposition exceeds the amount paid by the employee to acquire those rights.

Where the employee was deceased at the time the other person acquired the employee’s rights, the benefit is deemed to have been received by the particular person, in the taxation year in which the particular person transferred or disposed of the employee’s rights, as income from the duties of an office or employment performed by the particular person in that year in the country in which the employee primarily performed the duties of the employee’s office or employment.

1972, c. 23, s. 46; 1993, c. 16, s. 31; 1998, c. 16, s. 71.