I-3 - Taxation Act

Section 479 Disposition versions

2009-05-15

479. If the property described in section 476 is acquired as a consequence of the winding-up, discontinuance or reorganization of the business of the foreign affiliate or as consideration for the redemption, cancellation or acquisition by the affiliate of shares of its capital stock, and the taxpayer makes a valid election under subsection 6 of section 80.1 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) after 19 December 2006 in respect of all property so acquired, section 470 applies in respect of each such property as if such property were an indemnity acquired by the taxpayer as consideration for the sale of the foreign property that consisted of shares of the capital stock of the taxpayer’s foreign affiliate immediately before the acquisition and that was sold to a government or person referred to in section 469.

Similarly, if the taxpayer makes a valid election under subsection 6 of section 80.1 of the Income Tax Act after 19 December 2006 in respect of all amounts received or to be received by the taxpayer as interest on all property so acquired from the taxpayer’s affiliate, section 471 applies in respect of each such amount as if the property were such an indemnity.

Chapter V.2 of Title II of Book I applies in relation to an election made under subsection 6 of section 80.1 of the Income Tax Act or in relation to an election made under the first or second paragraph before 20 December 2006.

1973, c. 17, s. 53; 2009, c. 5, s. 166.

2006-03-01

479. Where the property contemplated in section 476 is acquired pursuant to the winding-up, discontinuance or reorganization of the business of the foreign affiliate or as consideration for the redemption, cancellation or acquisition by the affiliate of shares of its capital stock, the taxpayer is entitled to elect, in the form and within the delay prescribed in respect of any property so acquired that section 470 apply in respect of each such property as if such property were an indemnity acquired by the taxpayer as consideration for the sale of the foreign property that consisted of shares of the capital stock of the foreign affiliate owned by the taxpayer immediately before such acquisition and that was sold to a government or person contemplated in section 469.

He may also elect, on the same conditions and in respect of all amounts received or to be received by him as interest on all property so acquired from his affiliate, that section 471 apply in respect of each such amount as if the amount were such an indemnity.

1973, c. 17, s. 53.