I-3 - Taxation Act

Section 255.1 Disposition versions

2015-10-26

255.1. For the purposes of paragraph c.6 of section 255, the following rules apply:

(a)  in respect of a taxpayer’s interest in a flow-through entity, where a taxation year of the entity that includes 28 February 2000 or 17 October 2000, or that begins after 28 February 2000 and ends before 17 October 2000, ends in the taxpayer’s taxation year, the word “twice” in that paragraph c.6 is to be read, with the necessary modifications, as a reference to the fraction that is the reciprocal of the fraction in paragraphs a to d of section 231.0.1 that applies in respect of the flow-through entity for its taxation year; and

(b)  where the fair market value of all of a taxpayer’s interests in, and shares of the capital stock of, a flow-through entity is nil when the taxpayer disposes of those interests and shares, the fair market value of each such interest or share, as the case may be, is deemed at that time to be $1.

2003, c. 2, s. 87; 2015, c. 24, s. 53.

2006-03-01

255.1. For the purposes of paragraph c.6 of section 255 in respect of a taxpayer’s interest in a flow-through entity, where a taxation year of the entity that includes 28 February 2000 or 17 October 2000, or that begins after 28 February 2000 and ends before 17 October 2000, ends in the taxpayer’s taxation year, the word “twice” in that paragraph c.6 shall be read, with the necessary modifications, as a reference to the fraction that is the reciprocal of the fraction in paragraphs a to d of section 231.0.1 that applies in respect of the flow-through entity for its taxation year.

2003, c. 2, s. 87.