14.4. Where a person transfers property, directly or indirectly, by means of a trust or by any means whatever to a person with whom he is not dealing at arm’s length within the meaning of the Taxation Act (chapter I‐3), a person who is under 18 years of age, his spouse or a person who, after the transfer, becomes his spouse, the transferee becomes solidarily liable with the transferor to pay an amount equal to the lesser of the following amounts:
(a) the amount by which the fair market value of the property at the time it was transferred exceeds the fair market value at that time of the consideration given for the property;
(b) the aggregate of the amounts that the transferor is liable to pay under any fiscal law during the taxation year, within the meaning of the Taxation Act, in which the property was transferred or any preceding taxation year or in respect of any of such years.
If the transferred property is a share in undivided property, the fair market value of the share in that undivided property at the time of the transfer is deemed to be equal to the proportion of the fair market value of the undivided property at that time that that share is of the aggregate of the shares in that undivided property.
This section does not free the transferor or the transferee from their respective obligations under any other provision of a fiscal law.
1989, c. 77, s. 108; 1995, c. 1, s. 202; 2001, c. 53, s. 261.