I-3 - Taxation Act

Section 637 Disposition versions

2020-09-24

637. If, as part of a transaction or event or series of transactions or events, a taxpayer disposes of an interest in a particular partnership and an interest in the partnership is acquired by a person or partnership described in any of paragraphs a to d of section 637.1, the taxpayer’s taxable capital gain from the disposition of the interest is deemed, despite section 231, to be equal to the total of

(a)  subject to the second paragraph, 1/2 of the portion of the taxpayer’s capital gain for the year from the disposition that can reasonably be attributed to the increase in the value of a property of the particular partnership that is capital property (other than depreciable property) held directly or indirectly by the particular partnership through one or more other partnerships; and

(b)  the whole of the remaining portion of such capital gain.

However, where the taxation year of the taxpayer includes 28 February 2000 or 17 October 2000, or begins after 28 February 2000 and ends before 17 October 2000, the reference to the fraction “1/2” in subparagraph a of the first paragraph, as it read in respect of that taxation year, is to be read as a reference to the fraction in paragraphs a to d of section 231.0.1 that applies to the taxpayer for the year.

1972, c. 23, s. 481; 1984, c. 15, s. 134; 1990, c. 59, s. 217; 1997, c. 3, s. 71; 2003, c. 2, s. 147; 2015, c. 21, s. 210; 2020, c. 16, s. 95.

2015-10-21

637. If, as part of a transaction or event or series of transactions or events, a taxpayer disposes of an interest in a particular partnership and an interest in the partnership is acquired by a person or partnership described in any of paragraphs a to d of section 637.1, the taxpayer’s taxable capital gain from the disposition of the interest is deemed, despite section 231, to be equal to the total of

(a)  subject to the second paragraph, 1/2 of the portion of the taxpayer’s capital gain for the year from the disposition that can reasonably be attributed to the increase in the value of a property of the particular partnership that is capital property other than depreciable property held directly or indirectly by the particular partnership through one or more other partnerships; and

(b)  the whole of the remaining portion of such capital gain.

However, where the taxation year of the taxpayer includes 28 February 2000 or 17 October 2000, or begins after 28 February 2000 and ends before 17 October 2000, the reference to the fraction “1/2” in subparagraph a of the first paragraph, as it read in respect of that taxation year, is to be read as a reference to the fraction in paragraphs a to d of section 231.0.1 that applies to the taxpayer for the year.

1972, c. 23, s. 481; 1984, c. 15, s. 134; 1990, c. 59, s. 217; 1997, c. 3, s. 71; 2003, c. 2, s. 147; 2015, c. 21, s. 210.

2006-03-01

637. Notwithstanding section 231, a taxpayer’s taxable capital gain from the disposition of an interest in a partnership to any person exempt from tax under sections 980 to 999.1 is deemed to be equal to the total of

(a)  subject to the second paragraph, 1/2 of the portion of the taxpayer’s capital gain for the year therefrom that can reasonably be attributed to the increase in the value of any capital property of the partnership other than depreciable property; and

(b)  the whole of the remaining portion of such capital gain.

However, where the taxation year of the taxpayer includes 28 February 2000 or 17 October 2000, or begins after 28 February 2000 and ends before 17 October 2000, the reference to the fraction “1/2” in subparagraph a of the first paragraph shall be read as a reference to the fraction in paragraphs a to d of section 231.0.1 that applies to the taxpayer for the year.

1972, c. 23, s. 481; 1984, c. 15, s. 134; 1990, c. 59, s. 217; 1997, c. 3, s. 71; 2003, c. 2, s. 147.