I-3, r. 2 - Mandatory Transaction Disclosure Regulation

Section 1 Disposition versions

2022-06-29

1. In this Regulation, unless the context indicates a different meaning,

“Act” means the Taxation Act (chapter I-3);

“associated group” of which a particular person in a taxation year of the person or a particular partnership in a fiscal period of the partnership is a member means all the persons and partnerships that are associated with each other in the taxation year of the particular person or fiscal period of the particular partnership, as the case may be;

“Minister” means the Minister of Revenue;

“specified transaction” has the meaning assigned by section 1079.8.1 of the Act;

“transaction” has the meaning assigned by section 1079.8.1 of the Act.

For the purposes of this Regulation,

(a)  the definition of “regulation” in section 1 of the Act is to be read as if “by the Government” were replaced by “by the Government or the Minister”;

(b)  the provisions of the Act, including Titles I and II of Book I of Part I of the Act, apply for the purpose of determining whether a transaction carried out by a person or a partnership is a specified transaction carried out by the person or partnership, and whether an information return must be filed by an advisor or a promoter pursuant to section 1079.8.6.3 of the Act in respect of a transaction the advisor or promoter commercializes or promotes.

For the purpose of determining whether a person or a partnership is a member of an associated group in a taxation year of a particular person or a fiscal period of a particular partnership, the following rules apply:

(a)  a business carried on by an individual, other than a trust, is deemed to be carried on by a corporation all the voting shares in the capital stock of which are owned by the individual at the time referred to in section 21.20 of the Act, referred to as the “particular time” in this paragraph;

(b)  a partnership is deemed to be a corporation whose taxation year corresponds to the partnership’s fiscal period and all the voting shares in the capital stock of which are owned at the particular time by each member of the partnership in a proportion equal to the agreed proportion in respect of the member for the partnership’s fiscal period that includes the particular time;

(c)  a trust is deemed to be a corporation all the voting shares in the capital stock of which:

i.  in the case of a testamentary trust under which one or more beneficiaries are entitled to receive all of the income of the trust that arose before the date of death of one or the last surviving of those beneficiaries, in this subparagraph c referred to as the “distribution date”, and under which no other person can, before the distribution date, receive or otherwise obtain the enjoyment of any of the income or capital of the trust:

(1)  are owned at the particular time by such a beneficiary, if that beneficiary’s share of the income or capital of the trust depends on the exercise by any person of, or the failure by any person to exercise, a power to appoint, and the particular time occurs before the distribution date; or

(2)  are owned at the particular time by such a beneficiary in a proportion equal to the proportion that the fair market value of the beneficial interest in the trust of the beneficiary is of the fair market value of the beneficial interests in the trust of all the beneficiaries, if subparagraph 1 does not apply and the particular time occurs before the distribution date;

ii.  in the case where a beneficiary’s share of the accumulating income or capital of the trust depends on the exercise by any person of, or the failure by any person to exercise, a power to appoint, are owned at the particular time by the beneficiary, unless subparagraph i applies and the particular time occurs before the distribution date;

iii.  in any case where subparagraph ii does not apply, are owned at the particular time by the beneficiary in a proportion equal to the proportion that the fair market value of the beneficial interest in the trust of the beneficiary is of the fair market value of all beneficial interests in the trust, unless subparagraph i applies and the particular time occurs before the distribution date; and

iv.  in the case of a trust referred to in section 467 of the Act, are owned at the particular time by the person referred to in that section from whom property of the trust or property for which property of the trust was substituted was directly or indirectly received.

For the purposes of the definition of “associated group” in the first paragraph, where it may reasonably be considered that one of the main reasons for the separate existence of 2 or more entities, each being a corporation, trust or partnership, in a taxation year or a fiscal period, as the case may be, is to have the entity avoid the obligation to disclose a specified transaction, the entities are deemed to be associated with each other in the year or fiscal period, as the case may be.

M.O. 2021-03-03, s. 1; M.O. 2022-06-15, s. 1.

2021-03-17

1. In this Regulation, unless the context indicates a different meaning,

“Act” means the Taxation Act (chapter I-3);

“exempt property” has the meaning assigned by section 652.1 of the Act;

“Minister” means the Minister of Revenue;

“qualified small business corporation share” has the meaning assigned by section 726.6.1 of the Act;

“specified transaction” has the meaning assigned by section 1079.8.1 of the Act;

“transaction” has the meaning assigned by section 1079.8.1 of the Act.

For the purposes of this Regulation,

(a)  the definition of “regulation” in section 1 of the Act is to be read as if “by the Government” were replaced by “by the Government or the Minister”;

(b)  Titles I and II of Book I of Part I of the Act apply.

M.O. 2021-03-03, s. 1.

Not in force

In force: 2021-03-17

1. In this Regulation, unless the context indicates a different meaning,

“Act” means the Taxation Act (chapter I-3);

“exempt property” has the meaning assigned by section 652.1 of the Act;

“Minister” means the Minister of Revenue;

“qualified small business corporation share” has the meaning assigned by section 726.6.1 of the Act;

“specified transaction” has the meaning assigned by section 1079.8.1 of the Act;

“transaction” has the meaning assigned by section 1079.8.1 of the Act.

For the purposes of this Regulation,

(a)  the definition of “regulation” in section 1 of the Act is to be read as if “by the Government” were replaced by “by the Government or the Minister”;

(b)  Titles I and II of Book I of Part I of the Act apply.

M.O. 2021-03-03, s. 1.