I-3 - Taxation Act

Section 107.2 Disposition versions

2019-06-19

107.2. (Repealed).

1996, c. 39, s. 37; 2005, c. 1, s. 48; 2019, c. 14, s. 78.

2006-03-01

107.2. The exempt gains balance of an individual in respect of a business of the individual for a taxation year is the amount by which the aggregate of all amounts each of which is the amount determined under subparagraph d of the second paragraph of section 105.2 in respect of the business for a preceding taxation year is exceeded by the lesser of

(a)  the amount by which

i.  the amount that would have been the individual’s taxable capital gain determined under subparagraph b of the first paragraph of section 726.9.2 in respect of the business if

(1)  the amount designated in an election under section 726.9.2 in respect of the business were equal to the fair market value at the end of 22 February 1994 of the aggregate of the incorporeal capital property owned at that time by the elector in respect of the business, and

(2)  this Act were read without reference to section 726.9.3, exceeds

ii.  the amount determined by the formula

0.75(A − 1.1B); and

(b)  the individual’s taxable capital gain determined under subparagraph b of the first paragraph of section 726.9.2 in respect of the business.

For the purposes of the formula in subparagraph ii of subparagraph a of the first paragraph,

(a)  A is the amount designated in the election that was made under section 726.9.2 in respect of the business; and

(b)  B is the fair market value at the end of 22 February 1994 of the property referred to in subparagraph 1 of subparagraph i of subparagraph a of the first paragraph.

1996, c. 39, s. 37; 2005, c. 1, s. 48.