I-3 - Taxation Act

Section 569.0.0.4 Disposition versions

2015-10-21

569.0.0.4. For the purposes of subparagraph a of the first paragraph of section 569, a distributed property is deemed to have been disposed of by a disposing affiliate to a taxpayer for proceeds of disposition equal to the adjusted cost base of the distributed property to the disposing affiliate immediately before the time of its disposition, if

(a)  the liquidation and dissolution is a qualifying liquidation and dissolution of the disposing affiliate;

(b)  the distributed property is, at the time of its disposition, taxable Canadian property (other than treaty-protected property) of the disposing affiliate that is a share of the capital stock of a corporation resident in Canada; and

(c)  the taxpayer and the disposing affiliate have made a valid joint election under paragraph c of subsection 3.5 of section 88 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)).

Chapter V.2 of Title II of Book I applies in relation to an election made under paragraph c of subsection 3.5 of section 88 of the Income Tax Act.

2015, c. 21, s. 188.