I-3 - Taxation Act

Section 412.1 Disposition versions

2006-03-01

412.1. The first amount referred to in subparagraph ii of paragraph b of section 412 is the aggregate of all amounts each of which would be determined under the second paragraph of section 418.19, immediately before the time, in this section referred to as the “relevant time”, when such proceeds of disposition became receivable, in respect of the taxpayer and an original owner of the property, or of any other property acquired by the taxpayer with the property in circumstances in which section 418.19 applied and in respect of which the proceeds of disposition became receivable by the taxpayer at the relevant time, if

(a)  amounts that became receivable at or after the relevant time were not taken into account;

(b)  each designation made under subparagraph 1 of subparagraph ii of subparagraph b of the second paragraph of section 418.19 in respect of an amount that became receivable before the relevant time were made before the relevant time; and

(c)  no reduction under section 485.8 at or after the relevant time were taken into account.

The second amount referred to in subparagraph ii of paragraph b of section 412 is the total of

(a)  all amounts that would be determined under the second paragraph of section 418.19 at the relevant time in respect of the taxpayer and an original owner of the property or of any other property acquired by the taxpayer with the property in circumstances in which section 418.19 applied and in respect of which the proceeds of disposition became receivable by the taxpayer at the relevant time, if

i.  amounts that became receivable after the relevant time and amounts described in subparagraph ii of subparagraph b of the second paragraph of section 418.19 that became receivable at the relevant time were not taken into account,

ii.  each designation made under subparagraph 1 of subparagraph ii of subparagraph b of the second paragraph of section 418.19 in respect of an amount that became receivable at or before the relevant time were made before the relevant time, and

iii.  no reduction under section 485.8 at or after the relevant time were taken into account; and

(b)  such portion of the amount otherwise determined under subparagraph ii of paragraph b of section 412 as was otherwise applied to reduce the amount otherwise determined under that paragraph.

1995, c. 49, s. 106; 1996, c. 39, s. 113.