I-3 - Taxation Act

Section 125.2 Disposition versions

2006-03-01

125.2. Subject to sections 125.3 and 125.4, where at any particular time a lessee who has made an election under section 125.1 in respect of a leased property assigns the lease or subleases the property to another person, in this division referred to as the “assignee”, the following rules apply:

(a)  section 125.1 does not apply in computing the income of the lessee in respect of the lease for any period after the particular time;

(b)  if the lessee and the assignee have jointly so elected by filing the prescribed form with their fiscal returns under this Part for their respective taxation years that include the particular time, section 125.1 applies to the assignee as if

i.  the assignee had leased the property at the particular time from the owner of the property for a term of more than one year, and

ii.  the assignee and the owner of the property had jointly elected under the said section 125.1 in respect of the property by filing the prescribed form with their fiscal returns under this Part for their respective taxation years that include the particular time.

1991, c. 25, s. 42; 1993, c. 16, s. 71; 1994, c. 22, s. 97; 1996, c. 39, s. 46.