I-3 - Taxation Act

Section 333.4 Disposition versions

2019-06-19

333.4. In this chapter,

“eligible corporation”, of a taxpayer, means a taxable Canadian corporation of which the taxpayer holds, directly or indirectly, shares of the capital stock;

“eligible individual”, in respect of a vendor, at any time means an individual (other than a trust) who is related to the vendor and who is 18 years of age or over at that time;

“eligible interest”, of a taxpayer, means capital property of the taxpayer that is

(a)  a partnership interest in a partnership that carries on a business;

(b)  a share of the capital stock of a corporation that carries on a business; or

(c)  a share of the capital stock of a corporation 90% or more of the fair market value of which is attributable to eligible interests in another corporation;

“goodwill amount”, of a taxpayer, means an amount that the taxpayer has received or may become entitled to receive and that would be required, but for this chapter, to be included in the proceeds of disposition of a property included in Class 14.1 of Schedule B to the Regulation respecting the Taxation Act (chapter I-3, r. 1), or an amount to which section 93.18 applies, in respect of a business carried on by the taxpayer through an establishment located in Canada;

“restrictive covenant”, of a taxpayer, means an agreement entered into, an undertaking made, or a waiver of an advantage or right by the taxpayer, whether legally enforceable or not, that affects, or may affect, in any way whatever, the acquisition or provision of property or services by the taxpayer or by another taxpayer that does not deal at arm’s length with the taxpayer, other than an agreement or undertaking

(a)  that disposes of the taxpayer’s property; or

(b)  that is in satisfaction of an obligation described in section 298.1 that is not a disposition, unless the obligation being satisfied is in respect of a right to property or services that the taxpayer acquired for less than its fair market value;

“taxpayer” includes a partnership.

2009, c. 5, s. 117; 2015, c. 21, s. 161; 2019, c. 14, s. 115.

2015-10-21

333.4. In this chapter,

“eligible corporation”, of a taxpayer, means a taxable Canadian corporation of which the taxpayer holds, directly or indirectly, shares of the capital stock;

“eligible individual”, in respect of a vendor, at any time means an individual (other than a trust) who is related to the vendor and who is 18 years of age or over at that time;

“eligible interest”, of a taxpayer, means capital property of the taxpayer that is

(a)  a partnership interest in a partnership that carries on a business;

(b)  a share of the capital stock of a corporation that carries on a business; or

(c)  a share of the capital stock of a corporation 90% or more of the fair market value of which is attributable to eligible interests in another corporation;

“goodwill amount”, of a taxpayer, means an amount that the taxpayer has received or may become entitled to receive, and that is required to be included in the aggregate determined under subparagraph b of the second paragraph of section 107 in respect of a business carried on by the taxpayer through an establishment located in Canada;

“restrictive covenant”, of a taxpayer, means an agreement entered into, an undertaking made, or a waiver of an advantage or right by the taxpayer, whether legally enforceable or not, that affects, or may affect, in any way whatever, the acquisition or provision of property or services by the taxpayer or by another taxpayer that does not deal at arm’s length with the taxpayer, other than an agreement or undertaking

(a)  that disposes of the taxpayer’s property; or

(b)  that is in satisfaction of an obligation described in section 298.1 that is not a disposition, unless the obligation being satisfied is in respect of a right to property or services that the taxpayer acquired for less than its fair market value;

“taxpayer” includes a partnership.

2009, c. 5, s. 117; 2015, c. 21, s. 161.

2009-05-15

333.4. In this chapter,

“eligible corporation”, of a taxpayer, means a taxable Canadian corporation of which,

(a)  the taxpayer holds, directly or indirectly, shares of the capital stock; and

(b)  individuals with whom the taxpayer does not deal at arm’s length, determined without reference to paragraph b of section 20, hold in total, directly or indirectly, less than 10% of the issued and outstanding share capital which holdings have a total fair market value of less than 10% of the fair market value of all of the issued and outstanding shares of the capital stock of that taxable Canadian corporation;

“eligible interest”, of a taxpayer, means capital property of the taxpayer that is

(a)  a partnership interest in a partnership that carries on a business;

(b)  a share of the capital stock of a corporation that carries on a business; or

(c)  a share of the capital stock of a corporation 90% or more of the fair market value of which is attributable to eligible interests in another corporation;

“goodwill amount”, of a taxpayer, means an amount received or receivable by the taxpayer as consideration for the disposition by the taxpayer of goodwill, and that is required to be included in the aggregate determined under subparagraph b of the second paragraph of section 107 in respect of a business carried on by the taxpayer through an establishment located in Canada;

“restrictive covenant”, of a taxpayer, means an agreement entered into, an undertaking made, or a waiver of an advantage or right by the taxpayer, other than an agreement or undertaking for the disposition of the taxpayer’s property or—unless the obligation being satisfied is in respect of a right to property or services that the taxpayer acquired for less than its fair market value—for the satisfaction of an obligation described in section 298.1 that is not a disposition, whether legally enforceable or not, that affects, or is intended to affect, in any way whatever, the acquisition or provision of property or services by the taxpayer or by another taxpayer that does not deal at arm’s length with the taxpayer;

“taxpayer” includes a partnership.

2009, c. 5, s. 117.