I-3 - Taxation Act

Section 613.4 Disposition versions

2006-03-01

613.4. For the purposes of sections 613.2 and 613.3,

(a)  the amount or benefit to which the taxpayer referred to in section 613.2, or a person not dealing at arm’s length with the taxpayer, is at any time entitled and that is provided by way of an agreement or other arrangement under which the taxpayer or the person has a right, either immediately or in the future and either absolutely or contingently, otherwise than as a consequence of the death of the taxpayer, to acquire other property in exchange for all or any part of the taxpayer’s interest in the partnership referred to in that section shall not be considered to be less than the fair market value of the other property at that time; and

(b)  the amount or benefit to which the taxpayer or the person is at any time entitled and that is provided by way of a guarantee, security or similar covenant in respect of any loan or other obligation of the taxpayer or the person shall not be considered to be less than the aggregate of the unpaid amount of the loan or obligation at that time and all other amounts outstanding in respect of the loan or obligation at that time.

1988, c. 4, s. 40; 1997, c. 3, s. 71; 2001, c. 7, s. 64.