Technical Tax Amendments Act, 2012 (S.C. 2013, c. 34)
Full Document:
- HTMLFull Document: Technical Tax Amendments Act, 2012 (Accessibility Buttons available) |
- PDFFull Document: Technical Tax Amendments Act, 2012 [3313 KB]
Assented to 2013-06-26
PART 5OTHER AMENDMENTS TO THE INCOME TAX ACT AND RELATED LEGISLATION
R.S., c. 1 (5th Supp.)Income Tax Act
274. (1) Section 128.3 of the Act is replaced by the following:
Marginal note:Former resident — replaced shares
128.3 If, in a transaction to which section 51, subparagraphs 85.1(1)(a)(i) and (ii), subsection 85.1(8) or section 86 or 87 applies, a person acquires a share (in this section referred to as the “new share”) in exchange for another share or equity in a SIFT wind-up entity (in this section referred to as the “old share”), for the purposes of section 119, subsections 126(2.21) to (2.23), subparagraph 128.1(4)(b)(iv) and subsections 128.1(6) to (8), 180.1(1.4) and 220(4.5) and (4.6), the person is deemed not to have disposed of the old share, and the new share is deemed to be the same share as the old share.
(2) Subsection (1) applies to taxation years that begin after 2001, except that, before December 20, 2007, section 128.3 of the Act, as enacted by subsection (1), is to be read as follows:
128.3 If, in a transaction to which section 51, subparagraphs 85.1(1)(a)(i) and (ii) or section 86 or 87 applies, a person acquires a share (in this section referred to as the “new share”) in exchange for another share (in this section referred to as the “old share”), for the purposes of section 119, subsections 126(2.21) to (2.23), subparagraph 128.1(4)(b)(iv) and subsections 128.1(6) to (8), 180.1(1.4) and 220(4.5) and (4.6), the person is deemed not to have disposed of the old share, and the new share is deemed to be the same share as the old share.
275. (1) Clauses 129(3)(a)(ii)(B) and (C) of the Act are replaced by the following:
(B) 100/35 of the total of amounts deducted under subsection 126(1) from its tax for the year otherwise payable under this Part, and
(C) the amount determined by multiplying the total of amounts deducted under subsection 126(2) from its tax for the year otherwise payable under this Part, by the relevant factor for the year, and
(2) Subparagraph 129(3)(a)(iii) of the Act is replaced by the following:
(iii) the corporation’s tax for the year payable under this Part,
(3) Clause 129(3)(a)(ii)(B) of the Act, as enacted by subsection (1), applies to taxation years that begin after October 31, 2011.
(4) Clause 129(3)(a)(ii)(C) of the Act, as enacted by subsection (1), applies to the 2003 and subsequent taxation years.
(5) Subsection (2) applies to taxation years that begin after 2007.
276. (1) Paragraph 130.1(4)(b) of the Act is replaced by the following:
(b) notwithstanding any other provision of this Act, if an amount is received by a taxpayer in a taxation year as, on account of, in lieu of payment of or in satisfaction of, the dividend, the amount
(i) shall not be included in computing the taxpayer’s income for the year as income from a share of the capital stock of the corporation, and
(ii) is deemed to be a capital gain of the taxpayer from the disposition of capital property in the year.
(2) Subsections 130.1(4.2) to (4.5) of the Act are repealed.
(3) Subparagraph 130.1(6)(f)(i) of the Act is replaced by the following:
(i) debts owing to the corporation that were secured, whether by mortgages, hypothecs or in any other manner, on houses (as defined in section 2 of the National Housing Act) or on property included within a housing project (as defined in that section as it read on June 16, 1999), and
(4) Subsections (1) and (2) apply to taxation years that begin after October 31, 2011, except that if any part of a dividend declared by a corporation is in respect of capital gains of the corporation from dispositions of property that occurred before October 18, 2000, then paragraph 130.1(4)(b) of the Act, as enacted by subsection (1), is to be read, in its application to that part of the dividend, as it read in its application to the corporation’s last taxation year that began before November 1, 2011.
(5) Subsection (3) applies to property acquired by a corporation after October 31, 2011, unless
(a) the property is a particular debt
(i) that is owing to the corporation and secured on property (referred to in this paragraph as the “subject property”),
(ii) that replaces a debt (referred to in this paragraph as the “old debt”) that was on October 31, 2011 owing to the corporation and secured on the subject property, and
(iii) that has a maximum term for repayment that does not exceed the maximum term for repayment, in effect on October 31, 2011, of the old debt; and
(b) the corporation would be a mortgage investment corporation for its taxation year that includes October 31, 2011 if that taxation year were determined as though it ended on October 31, 2011.
(6) If property that is held by a corporation on October 31, 2011 consists of debt, the term for repayment of the debt is extended by agreement entered into on a particular date that is after October 31, 2011, and the extended term exceeds the maximum term for repayment of the debt in effect on October 31, 2011, then the property is deemed, for the purposes of applying subsection (5), to have been acquired by the corporation on the particular date.
277. (1) Paragraph 131(1)(b) of the Act is replaced by the following:
(b) notwithstanding any other provision of this Act (other than paragraph (5.1)(b)), if an amount is received by a taxpayer in a taxation year as, on account of, in lieu of payment of or in satisfaction of, the dividend, the amount
(i) shall not be included in computing the taxpayer’s income for the year as income from a share of the capital stock of the corporation, and
(ii) is deemed to be a capital gain of the taxpayer from the disposition of capital property in the year.
(2) Subsections 131(1.5) to (1.9) of the Act are repealed.
(3) Subparagraph 131(5.1)(b)(i) of the Act is replaced by the following:
(i) subparagraph (1)(b)(ii) does not apply in respect of the dividend, to the extent of the TCP gains distribution, and
(4) Paragraph (a) of the definition “capital gains dividend account” in subsection 131(6) of the Act is replaced by the following:
(a) the total of
(i) its capital gains, for all taxation years that began more than 60 days before that time, from dispositions of property after 1971 and before that time while it was a mutual fund corporation, and
(ii) all amounts each of which is an amount in respect of a distribution made by a trust to the corporation, at a time that is after its 2004 taxation year and at which it is a mutual fund corporation, in respect of capital gains of the trust equal to twice the amount determined by the following formula:
A – B
where
- A
- is the amount of the distribution, and
- B
- is the amount designated under subsection 104(21) by the trust in respect of the net taxable capital gains of the trust attributable to those capital gains
(5) Subparagraph (b)(iii) of the definition “capital gains dividend account” in subsection 131(6) of the Act is replaced by the following:
(iii) an amount equal to 100/14 of its capital gains refund for any taxation year throughout which it was a mutual fund corporation where the year ended more than 60 days before that time;
(6) Subsections (1) to (3) and (5) apply to taxation years that begin after October 31, 2011, except that
(a) if any part of a dividend declared by a corporation is in respect of capital gains of the corporation from dispositions of property that occurred before October 18, 2000, then paragraph 131(1)(b) of the Act, as enacted by subsection (1), is to be read, in its application to that part of the dividend, as it read in its application to the corporation’s last taxation year that began before November 1, 2011; and
(b) if a corporation had a capital gains refund for a taxation year that began before November 2011, then in computing the capital gains dividend account of the corporation at any time in a taxation year of the corporation that begins after October 31, 2011, subparagraph (b)(iii) of the definition “capital gains dividend account” in subsection 131(6) of the Act, as enacted by subsection (5), is to be read, in its application to the corporation, as it read in its application to the corporation’s last taxation year that began before November 1, 2011.
(7) Subsection (4) applies to the 2005 and subsequent taxation years.
278. (1) Paragraph 132(6)(c) of the Act is replaced by the following:
(c) it complied with prescribed conditions.
(2) Subsection (1) applies to the 2000 and subsequent taxation years.
279. (1) Paragraph 132.11(1)(b) of the Act is replaced by the following:
(b) if the trust’s taxation year ends on December 15 because of paragraph (a), subject to subsection (1.1), each subsequent taxation year of the trust is deemed to be the period that begins at the beginning of December 16 of a calendar year and ends at the end of December 15 of the following calendar year or at any earlier time that is determined under paragraph 132.2(3)(b) or subsection 142.6(1); and
(2) Paragraph 132.11(1)(c) of the French version of the Act is replaced by the following:
c) chacun de ses exercices qui soit commence dans une de ses années d’imposition se terminant le 15 décembre par l’effet de l’alinéa a), soit se termine dans une de ses années d’imposition ultérieures, doit prendre fin au plus tard à la fin de l’année où il a commencé.
(3) Subsection 132.11(4) of the Act is replaced by the following:
Marginal note:Amounts paid or payable to beneficiaries
(4) Notwithstanding subsection 104(24), for the purposes of subsections (5) and (6) and 104(6) and (13) and paragraph (i) of the definition “disposition” in subsection 248(1) each amount that is paid, or that becomes payable, by a trust to a beneficiary after the end of a particular taxation year of the trust that ends on December 15 of a calendar year because of subsection (1) and before the end of that calendar year, is deemed to have been paid or to have become payable, as the case may be, to the beneficiary at the end of the particular year and not at any other time.
(4) Subsection (1) is deemed to have come into force on January 1, 1999, except that, in applying paragraph 132.11(1)(b) of the Act, as enacted by subsection (1), to taxation years that end before 2000, that paragraph is to be read without reference to “subject to subsection (1.1)”.
(5) Subsection (2) applies to the 1998 and subsequent taxation years.
(6) Subsection (3) applies to amounts that, after 1999, are paid or have become payable by a trust.
280. (1) Section 132.2 of the Act is replaced by the following:
Marginal note:Definitions re qualifying exchange of mutual funds
132.2 (1) The following definitions apply in this section.
“first post-exchange year”
« première année suivant l’échange »
“first post-exchange year”, of a fund in respect of a qualifying exchange, means the taxation year of the fund that begins immediately after the acquisition time.
“qualifying exchange”
« échange admissible »
“qualifying exchange” means a transfer at any time (in this section referred to as the “transfer time”) of all or substantially all of the property of a mutual fund corporation (other than a SIFT wind-up corporation) or a mutual fund trust to a mutual fund trust (in this section referred to as the “transferor” and “transferee”, respectively, and as the “funds”) if
(a) all or substantially all of the shares issued by the transferor and outstanding immediately before the transfer time are within 60 days after the transfer time disposed of to the transferor;
(b) no person disposing of shares of the transferor to the transferor within that 60-day period (otherwise than pursuant to the exercise of a statutory right of dissent) receives any consideration for the shares other than units of the transferee; and
(c) the funds jointly so elect, by filing a prescribed form with the Minister on or before the election’s due date.
“share”
« action »
“share” means a share of the capital stock of a mutual fund corporation and a unit of a mutual fund trust.
Marginal note:Timing
(2) In respect of a qualifying exchange, a time referred to in the following list immediately follows the time that precedes it in the list
(a) the transfer time;
(b) the first intervening time;
(c) the acquisition time;
(d) the beginning of the funds’ first post-exchange years;
(e) the depreciables disposition time;
(f) the second intervening time; and
(g) the depreciables acquisition time.
Marginal note:General
(3) In respect of a qualifying exchange,
(a) each property of a fund, other than property disposed of by the transferor to the transferee at the transfer time and depreciable property, is deemed to have been disposed of, and to have been reacquired by the fund, at the first intervening time, for an amount equal to the lesser of
(i) the fair market value of the property at the transfer time, and
(ii) the greater of
(A) its cost amount, and
(B) the amount that the fund designates in respect of the property in a notification to the Minister accompanying the election in respect of the qualifying exchange;
(b) subject to paragraph (l), the last taxation years of the funds that began before the transfer time are deemed to have ended at the acquisition time, and their first post-exchange years are deemed to have begun immediately after those last taxation years ended;
(c) each depreciable property of a fund (other than property to which subsection (5) applies and property to which paragraph (d) would, if this Act were read without reference to this paragraph, apply) is deemed to have been disposed of, and to have been reacquired, by the fund at the second intervening time for an amount equal to the lesser of
(i) the fair market value of the property at the depreciables disposition time, and
(ii) the greater of
(A) the lesser of its capital cost and its cost amount to the disposing fund at the depreciables disposition time, and
(B) the amount that the fund designates in respect of the property in a notification to the Minister accompanying the election in respect of the qualifying exchange;
(d) if at the second intervening time the undepreciated capital cost to a fund of depreciable property of a prescribed class exceeds the fair market value of all the property of that class, the excess is to be deducted in computing the fund’s income for the taxation year that includes the transfer time and is deemed to have been allowed in respect of property of that class under regulations made for the purpose of paragraph 20(1)(a);
(e) except as provided in paragraph (m), the transferor’s cost of any particular property received by the transferor from the transferee as consideration for the disposition of the property is deemed to be
(i) nil, if the particular property is a unit of the transferee, and
(ii) the particular property’s fair market value at the transfer time, in any other case;
(f) the transferor’s proceeds of disposition of any units of the transferee that were disposed of by the transferor at any particular time that is within 60 days after the transfer time in exchange for shares of the transferor, are deemed to be equal to the cost amount of the units to the transferor immediately before the particular time;
(g) if, at any particular time that is within 60 days after the transfer time, a taxpayer disposes of shares of the transferor to the transferor in exchange for units of the transferee
(i) the taxpayer’s proceeds of disposition of the shares and the cost to the taxpayer of the units are deemed to be equal to the cost amount to the taxpayer of the shares immediately before the particular time,
(ii) for the purposes of applying section 116 in respect of the disposition, the shares are deemed to be excluded property of the taxpayer,
(iii) where the qualifying exchange occurs after 2004, for the purposes of applying section 218.3 in respect of that exchange, the payment or crediting of the units to the taxpayer by the transferor is deemed not to be an assessable distribution,
(iv) where all of the taxpayer’s shares of the transferor have been so disposed of, for the purpose of applying section 39.1 in respect of the taxpayer after that disposition, the transferee is deemed to be the same entity as the transferor,
(v) for the purpose of the definition “designated beneficiary” in section 210, the units are deemed not to have been held at any time by the transferor, and
(vi) where the taxpayer is at the particular time affiliated with one or both of the funds,
(A) those units are deemed not to be identical to any other units of the transferee,
(B) if the taxpayer is the transferee, and the units cease to exist when the taxpayer acquires them (or, for greater certainty, when the taxpayer would but for that cessation have acquired them), the taxpayer is deemed
(I) to have acquired those units at the particular time, and
(II) to have disposed of those units immediately after the particular time for proceeds of disposition equal to the cost amount to the taxpayer of those units at the particular time, and
(C) in any other case, for the purpose of computing any gain or loss of the taxpayer from the taxpayer’s first disposition, after the particular time, of each of those units,
(I) if that disposition is a renunciation or surrender of the unit by the taxpayer for no consideration, and is not in favour of any person other than the transferee, the taxpayer’s proceeds of disposition of that unit are deemed to be equal to that unit’s cost amount to the taxpayer immediately before that disposition, and
(II) if subclause (I) does not apply, the taxpayer’s proceeds of disposition of that unit are deemed to be equal to the greater of that unit’s fair market value and its cost amount to the taxpayer immediately before that disposition;
(h) where a share to which paragraph (g) applies would, if this Act were read without reference to this paragraph, cease to be a qualified investment (within the meaning assigned by subsection 146(1), 146.1(1) or 146.3(1), section 204 or subsection 205(1) or 207.01(1)) as a consequence of the qualifying exchange, the share is deemed to be a qualified investment until the earlier of the day that is 60 days after the day that includes the transfer time and the time at which it is disposed of in accordance with paragraph (g);
(i) there shall be added to the amount determined under the description of A in the definition “refundable capital gains tax on hand” in subsection 132(4) in respect of the transferee for its taxation years that begin after the transfer time the amount, if any, by which
(i) the transferor’s refundable capital gains tax on hand (within the meaning assigned by subsection 131(6) or 132(4), as the case may be) at the end of its taxation year that includes the transfer time
exceeds
(ii) the transferor’s capital gains refund (within the meaning assigned by paragraph 131(2)(a) or 132(1)(a), as the case may be) for that year;
(j) no amount in respect of a non-capital loss, net capital loss, restricted farm loss, farm loss or limited partnership loss of a fund for a taxation year that began before the transfer time is deductible in computing the taxable income of either of the funds for a taxation year that begins after the transfer time;
(k) if the transferor is a mutual fund trust, for the purposes of subsections 132.1(1) and (3) to (5), the transferee is deemed after the transfer time to be the same mutual fund trust as, and a continuation of, the transferor;
(l) if the transferor is a mutual fund corporation
(i) for the purpose of subsection 131(4) but, for greater certainty, without having any effect on the computation of any amount determined under this Part, the transferor is deemed in respect of any share disposed of in accordance with paragraph (g) to be a mutual fund corporation at the time of the disposition, and
(ii) for the purpose of Part I.3 but, for greater certainty, without having any effect on the computation of any amount determined under this Part, the transferor’s taxation year that, if this Act were read without reference to this paragraph, would have included the transfer time is deemed to have ended immediately before the transfer time;
(m) for the purpose of determining the funds’ capital gains redemptions (as defined in subsection 131(6) or 132(4), as the case may be), for their taxation years that include the transfer time,
(i) the total of the cost amounts to the transferor of all its properties at the end of the year is deemed to be the total of all amounts each of which is
(A) the transferor’s proceeds of disposition of a property that was transferred to a transferee on the qualifying exchange, or
(B) the cost amount to the transferor at the end of the year of a property that was not transferred on the qualifying exchange, and
(ii) the transferee is deemed not to have acquired any property that was transferred to it on the qualifying exchange; and
(n) except as provided in subparagraph (l)(i), the transferor is, notwithstanding subsections 131(8) and 132(6), deemed to be neither a mutual fund corporation nor a mutual fund trust for taxation years that begin after the transfer time.
Marginal note:Qualifying exchange — non-depreciable property
(4) If a transferor transfers a property, other than a depreciable property, to a transferee in a qualifying exchange,
(a) the transferee is deemed to have acquired the property at the acquisition time and not to have acquired the property at the transfer time; and
(b) the transferor’s proceeds of disposition of the property and the transferee’s cost of the property are deemed to be the lesser of
(i) the fair market value of the property at the transfer time, and
(ii) the greatest of
(A) the cost amount to the transferor of the property at the transfer time,
(B) the amount that the funds agree on in respect of the property in their election, and
(C) the fair market value at the transfer time of the consideration (other than units of the transferee) received by the transferor for the disposition of the property.
Marginal note:Depreciable property
(5) If a transferor transfers a depreciable property to a transferee in a qualifying exchange,
(a) the transferor is deemed to have disposed of the property at the depreciables disposition time, and not to have disposed of the property at the transfer time;
(b) the transferee is deemed to have acquired the property at the depreciables acquisition time, and not to have acquired the property at the transfer time;
(c) the transferor’s proceeds of disposition of the property and the transferee’s cost of the property are deemed to be the lesser of
(i) the fair market value of the property at the transfer time, and
(ii) the greatest of
(A) the lesser of its capital cost and its cost amount to the transferor immediately before the depreciables disposition time,
(B) the amount that the funds agree on in respect of the property in their election, and
(C) the fair market value at the transfer time of the consideration (other than units of the transferee) received by the transferor for the disposition of the property;
(d) where the capital cost of the property to the transferor exceeds the transferor’s proceeds of disposition of the property under paragraph (c), for the purposes of sections 13 and 20 and any regulations made for the purpose of paragraph 20(1)(a),
(i) the property’s capital cost to the transferee is deemed to be the amount that was its capital cost to the transferor, and
(ii) the excess is deemed to have been allowed to the transferee in respect of the property under regulations made for the purpose of paragraph 20(1)(a) in computing income for taxation years ending before the transfer time; and
(e) where two or more depreciable properties of a prescribed class are disposed of by the transferor to the transferee in the same qualifying exchange, paragraph (c) applies as if each property so disposed of had been separately disposed of in the order designated by the transferor at the time of making the election in respect of the qualifying exchange or, if the transferor does not so designate any such order, in the order designated by the Minister.
Marginal note:Due date
(6) The due date of an election referred to in paragraph (c) of the definition “qualifying exchange” in subsection (1) is
(a) the day that is six months after the day that includes the transfer time; and
(b) on joint application by the funds, any later day that the Minister accepts.
Marginal note:Amendment or Revocation of Election
(7) The Minister may, on joint application by the funds on or before the due date of an election referred to in paragraph (c) of the definition “qualifying exchange” in subsection (1), grant permission to amend or revoke the election.
(2) The definitions “first post-exchange year” and “share” in subsection 132.2(1) and subsections 132.2(2) to (5) of the Act, as enacted by subsection (1), apply to qualifying exchanges that occur after 1998, except that,
(a) if a qualifying exchange occurred before July 18, 2005 and the transferee has, before that day, filed a return of income, for any taxation year, that identified the realization of any loss that would not have been realized if paragraphs 132.2(3)(f) and (g) of the Act, as enacted by subsection (1), had applied in respect of the qualifying exchange, those paragraphs are to be read in their application to the qualifying exchange as follows:
(f) the transferor’s proceeds of disposition of any units of the transferee that were received by the transferor as consideration for the disposition of the property, and that were disposed of by the transferor within 60 days after the transfer time in exchange for shares of the transferor, are deemed to be nil;
(g) if, within 60 days after the transfer time, a taxpayer disposes of shares of the transferor to the transferor in exchange for units of the transferee
(i) the taxpayer’s proceeds of disposition of the shares and the cost to the taxpayer of the units are deemed to be equal to the cost amount to the taxpayer of the shares immediately before the transfer time,
(ii) for the purposes of applying section 116 in respect of the disposition, the shares are deemed to be excluded property of the taxpayer,
(iii) where the qualifying exchange occurs after 2004, for the purposes of applying section 218.3 in respect of that exchange, the payment or crediting of the units to the taxpayer by the transferor is deemed not to be an assessable distribution,
(iv) where all of the taxpayer’s shares of the transferor have been so disposed of, for the purpose of applying section 39.1 in respect of the taxpayer after that disposition, the transferee is deemed to be the same entity as the transferor, and
(v) for the purpose of the definition “designated beneficiary” in section 210, the units are deemed not to have been held at any time by the transferor;
(b) before the 2008 taxation year, paragraph 132.2(3)(h) of the Act, as enacted by subsection (1), is to be read as follows:
(h) where a share to which paragraph (g) applies would, if this Act were read without reference to this paragraph, cease to be a qualified investment (within the meaning assigned by subsection 146(1), 146.1(1) or 146.3(1) or section 204) as a consequence of the qualifying exchange, the share is deemed to be a qualified investment until the earlier of the day that is 60 days after the transfer time and the time at which it is disposed of in accordance with paragraph (g);
and
(c) for the 2008 taxation year, paragraph 132.2(3)(h) of the Act, as enacted by subsection (1), is to be read as follows:
(h) where a share to which paragraph (g) applies would, if this Act were read without reference to this paragraph, cease to be a qualified investment (within the meaning assigned by subsection 146(1), 146.1(1) or 146.3(1), section 204 or subsection 205(1)) as a consequence of the qualifying exchange, the share is deemed to be a qualified investment until the earlier of the day that is 60 days after the transfer time and the time at which it is disposed of in accordance with paragraph (g);
(3) For qualifying exchanges that occurred after June 1994 and before 1999, paragraph 132.2(1)(j) of the Act is to be read as follows:
(j) where shares of the transferor have been disposed of by a taxpayer to the transferor in exchange for units of the transferee within 60 days after the transfer time,
(i) the taxpayer’s proceeds of disposition of the shares and the cost to the taxpayer of the units are deemed to be equal to the cost amount to the taxpayer of the shares immediately before the transfer time,
(ii) if all of the taxpayer’s shares of the transferor have been so disposed of, for the purposes of applying section 39.1 in respect of the taxpayer after that disposition, the transferee is deemed to be the same entity as the transferor, and
(iii) for the purpose of the definition “designated beneficiary” in section 210, the units are deemed not to have been held at any time by the transferor;
(4) For qualifying exchanges that occurred after June 1994 and before 1999, subsection 132.2(1) of the Act is to be read as if it contained a paragraph (j.1) that read as follows:
(j.1) if shares of the transferor have been disposed of by a taxpayer to the transferor in exchange for units of the transferee within 60 days after the transfer time, for the purposes of applying section 116 in respect of the disposition, the shares are deemed to be excluded property of the taxpayer;
(5) The definition “qualifying exchange” in subsection 132.2(1) and subsections 132.2(6) and (7) of the Act, as enacted by subsection (1), apply to transfers that occur after June 1994, except that, before December 20, 2007, the portion of the definition “qualifying exchange” in subsection 132.2(1) before paragraph (a), as enacted by subsection (1), is to be read as follows:
- “qualifying exchange”
“qualifying exchange” means a transfer at any time (in this section referred to as the “transfer time”) of all or substantially all of the property of a mutual fund corporation or a mutual fund trust to a mutual fund trust (in this section referred to as the “transferor” and “transferee”, respectively, and as the “funds”) if
(6) If an election under paragraph (c) of the definition “qualifying exchange” in subsection 132.2(2) of the Act was made, the election continues to have the effect of having section 132.2 of the Act, as modified from time to time, apply to the transfer.
(7) If an election under subsection 159(4) of the Income Tax Amendments Act, 1997, S.C. 1998, c. 19, was made in respect of a transfer to read subsection 132.2(1) of the Income Tax Act without reference to paragraph 132.2(1)(p) of that Act, the election is, on the application of subsection (1), deemed to have the effect of reading subsection 132.2(3) of that Act, as enacted by subsection (1), in respect of the transfer without reference to its paragraph (i).
Page Details
- Date modified: