I-3 - Taxation Act

Section 92.31 Disposition versions

2017-02-08

92.31. The second paragraph applies for a taxation year of an entity in respect of a security of the entity if

(a)  the security becomes, at a particular time in the taxation year, a stapled security of the entity and, as a consequence, section 158.18 applies to deny the deductibility of amounts described in paragraphs a and b of that section;

(b)  the security (or any security for which the security was substituted) ceased, at an earlier time, to be a stapled security of any entity and, as a consequence, section 158.18 ceased to apply to deny the deductibility of amounts that would have been described in paragraphs a and b of that section if the security had not ceased to be a stapled security; and

(c)  throughout the period that began immediately after the most recent time referred to in subparagraph b and that ends at the particular time, the security (or any security for which the security was substituted) was not a stapled security of any entity.

Where this paragraph applies for a taxation year of an entity in respect of a security of the entity, the entity must include in computing its income for the year each amount that

(a)  was deducted by the entity (or by another entity that issued a security for which the security was substituted) in computing its income for a taxation year that includes any part of the period described in subparagraph c of the first paragraph; and

(b)  would not have been so deductible if section 158.18 had applied in respect of the amount.

The definitions in section 158.16 apply to this section and section 92.32.

2017, c. 1, s. 86.