I-3 - Taxation Act

Section 217.7 Disposition versions

2015-10-26

217.7. (Repealed).

1997, c. 31, s. 27; 2015, c. 24, s. 42.

2006-03-01

217.7. For the purposes of Division VIII.2, where at the end of the year 1995 an individual carried on a business as a member of a partnership no fiscal period of which ended at the end of the year 1994, an amount is included under section 217.3 in computing the individual’s income for the individual’s taxation year 1995 in respect of the business and the conditions set out in the second paragraph are met, the individual’s income on 31 December 1995 in respect of the business is deemed to be equal to the amount that would have been included in computing the individual’s income under section 217.3 if

(a)  subparagraph a of the second paragraph of section 217.3 were read as follows:

“(a) A is the individual’s income from the business for the particular fiscal period, determined as if paragraphs a to d of section 217.11 applied in computing that income;”;

(b)  subparagraph ii of subparagraph b of the second paragraph of section 217.3 were read as follows:

“ii. the aggregate of the maximum amounts deductible under the said Title VI.5 in computing the individual’s taxable income for the individual’s taxation year that includes the end of the particular fiscal period;”; and

(c)  the individual were deemed, for the purposes of subparagraphs c and d of the second paragraph of section 217.3, to have carried on the business on the days on which the professional corporation referred to in the second paragraph carried on the business.

The conditions to which the first paragraph refers are as follows:

(a)  the business was carried on by a professional corporation as a member of the partnership at the end of the year 1994;

(b)  the professional corporation transferred its interest in the partnership to the individual before the end of the year 1995;

(c)  the individual is a practising member of the professional order under the authority of which the professional corporation practised the profession;

(d)  the individual was a specified shareholder of the professional corporation immediately before the transfer; and

(e)  the professional corporation does not have a share of the income or loss of the partnership for the first fiscal period of the partnership that ends after the end of the year 1995.

1997, c. 31, s. 27.