I-3 - Taxation Act

Section 125.6 Disposition versions

2006-03-01

125.6. For the purposes of section 125.1, where at any particular time, an addition or alteration, in this section referred to as the “additional property”, is made by a lessor to a property, in this section referred to as the “original property”, of the lessor that is the subject of a lease, the lessor and the lessee of the original property have filed the joint election referred to in section 125.1 in respect of the original property, and, as a consequence of the addition or alteration, the total amount payable by the lessee for the use of, or the right to use, the original property and the additional property exceeds the amount so payable in respect of the original property, the following rules apply:

(a)  the lessee is deemed to have leased the additional property from the lessor at the particular time,

(b)  the term of the lease of the additional property is deemed to be greater than one year,

(c)  the lessor and the lessee are deemed to have jointly elected in accordance with section 125.1 in respect of the additional property,

(d)  the prescribed rate in effect at the particular time in respect of the additional property is deemed to be equal to the prescribed rate in effect in respect of the original property at the particular time,

(e)  the additional property is deemed, for the purposes of section 125.1, not to be prescribed property, and

(f)  the amount by which the total amount payable by the lessee for the use of, or the right to use, the original property and the additional property exceeds the amount so payable in respect of the original property is deemed to be an amount payable by the lessee for the use of, or the right to use, the additional property.

1993, c. 16, s. 72; 1994, c. 22, s. 100.