I-3 - Taxation Act

Section 1129.12.19 Disposition versions

2010-10-27

1129.12.19. If a qualifying security held by a partnership is the subject of an allowable redemption or repayment by a qualified cooperative or qualified federation of cooperatives before 24 June 2009, an individual who is a member of the partnership at the end of the partnership’s fiscal period in which the redemption or repayment is made, is required to pay, for the taxation year in which the fiscal period ends, a tax equal to the amount determined by the formula

[(1,826 − A)/1,826] × B × C.

In the formula in the first paragraph,

(a)  A is the number of days in the period that begins on the issue date of the qualifying security referred to in the first paragraph and that ends on the day on which the qualifying security is redeemed or repaid;

(b)  B is the lesser of

i.  25% of the acquisition cost of the qualifying security to the partnership, and

ii.  the amount paid by the qualified cooperative or qualified federation of cooperatives for the redemption or repayment of the security; and

(c)  C is the agreed proportion in respect of the individual for the fiscal period referred to in the first paragraph.

For the purposes of this section, the acquisition cost of the qualifying security to the partnership is the aggregate of the costs determined in respect of the partnership’s eligible members in accordance with section 965.39.5, without taking into account the borrowing costs and the other costs related to its acquisition.

2006, c. 37, s. 52; 2009, c. 15, s. 394; 2010, c. 5, s. 193; 2010, c. 25, s. 209.

2010-04-20

1129.12.19. If a qualifying security held by a partnership is the subject of an allowable redemption or repayment by a qualified cooperative or qualified federation of cooperatives, an individual who is a member of the partnership at the end of the partnership’s fiscal period in which the redemption or repayment is made, is required to pay, for the taxation year in which the fiscal period ends, a tax equal to the amount determined by the formula

[(1,826 − A) / 1,826] × B × C.

In the formula in the first paragraph,

(a)  A is the number of days in the period that begins on the issue date of the qualifying security referred to in the first paragraph and that ends on the day on which the qualifying security is redeemed or repaid;

(b)  B is the lesser of

i.  25% of the acquisition cost of the qualifying security to the partnership, and

ii.  the amount paid by the qualified cooperative or qualified federation of cooperatives for the redemption or repayment of the security; and

(c)  C is the agreed proportion in respect of the individual for the fiscal period referred to in the first paragraph.

For the purposes of this section, the acquisition cost of the qualifying security to the partnership is the aggregate of the costs determined in respect of the partnership’s eligible members in accordance with section 965.39.5, without taking into account the borrowing costs and the other costs related to its acquisition.

2006, c. 37, s. 52; 2009, c. 15, s. 394; 2010, c. 5, s. 193.

2009-06-04

1129.12.19. If a qualifying security held by a partnership is the subject of an allowable redemption or repayment by a qualified cooperative or qualified federation of cooperatives, an individual who is a member of the partnership at the end of the partnership’s fiscal period in which the redemption or repayment is made, is required to pay, for the taxation year in which the fiscal period ends, a tax equal to the amount determined by the formula

[(1,826 − A) / 1,826] × B × C.

In the formula in the first paragraph,

(a)  A is the number of days in the period that begins on the issue date of the qualifying security referred to in the first paragraph and that ends on the day on which the qualifying security is redeemed or repaid;

(b)  B is the lesser of

i.  25% of the acquisition cost of the qualifying security to the partnership, and

ii.  the amount paid by the qualified cooperative or qualified federation of cooperatives for the redemption or repayment of the security; and

(c)  C is the product obtained by multiplying the cost of the qualifying security to the partnership by the agreed proportion in respect of the individual for the fiscal period referred to in the first paragraph.

For the purposes of this section, the acquisition cost of the qualifying security to the partnership is the aggregate of the costs determined in respect of the partnership’s eligible members in accordance with section 965.39.5, without taking into account the borrowing costs and the other costs related to its acquisition.

2006, c. 37, s. 52; 2009, c. 15, s. 394.

2006-12-06

1129.12.19. If a qualifying security held by a partnership is the subject of an allowable redemption or repayment by a qualified cooperative or qualified federation of cooperatives, an individual who is a member of the partnership at the end of the partnership’s fiscal period in which the redemption or repayment is made, is required to pay, for the taxation year in which the fiscal period ends, a tax equal to the amount determined by the formula

[(1,826 − A) / 1,826] × B × C.

In the formula in the first paragraph,

(a)  A is the number of days in the period that begins on the issue date of the qualifying security referred to in the first paragraph and that ends on the day on which the qualifying security is redeemed or repaid;

(b)  B is the lesser of

i.  25% of the acquisition cost of the qualifying security to the partnership, and

ii.  the amount paid by the qualified cooperative or qualified federation of cooperatives for the redemption or repayment of the security; and

(c)  C is the proportion of the cost of the qualifying security to the partnership that the share of the individual of the income or loss of the partnership for the fiscal period referred to in the first paragraph is of the income or loss of the partnership for the fiscal period, on the assumption that, if the income and loss of the partnership for the fiscal period are nil, the income of the partnership for the fiscal period is equal to $1,000,000.

For the purposes of this section, the acquisition cost of the qualifying security to the partnership is the aggregate of the costs determined in respect of the partnership’s eligible members in accordance with section 965.39.5, without taking into account the borrowing costs and the other costs related to its acquisition.

2006, c. 37, s. 52.