I-3 - Taxation Act

Section 425 Disposition versions

2006-03-01

425. The disposition or acquisition by a taxpayer, at any time in a taxation year that begins before 1 January 2007, of property that is petroleum, natural gas or other related hydrocarbons, or metal or minerals produced in the operation by the taxpayer of a natural accumulation of petroleum or natural gas, an oil or gas well or a mineral resource, situated in Canada, is deemed to be made at the fair market value of that property at that time, where

(a)  the disposition is to a person referred to in section 90 gratuitously or for a consideration less than that fair market value; or

(b)  the acquisition is from a person referred to in section 90 for an amount greater than that fair market value.

1975, c. 22, s. 92; 1979, c. 18, s. 28; 1987, c. 67, s. 99; 1995, c. 49, s. 236; 2005, c. 1, s. 100.