I-3 - Taxation Act

Section 93.14 Disposition versions

2019-06-19

93.14. Where a taxpayer carries on a particular business, the following rules apply:

(a)  there is deemed to be a single goodwill property in respect of the particular business;

(b)  if at a particular time the taxpayer acquires goodwill as part of an acquisition of all or a part of another business that is carried on, after the acquisition, as part of the particular business—or is deemed in accordance with section 93.15 to acquire goodwill at a particular time in respect of the particular business—the cost of the goodwill is added at that time to the cost of the goodwill property in respect of the particular business;

(c)  where at a particular time the taxpayer disposes of goodwill as part of the disposition of part of the particular business, receives proceeds of disposition a portion of which is attributable to goodwill and continues to carry on the particular business or is deemed in accordance with section 93.17 to dispose of goodwill at a particular time in respect of the particular business,

i.  the taxpayer is deemed to dispose at that time of a portion of the goodwill property in respect of the particular business having a cost equal to the lesser of the cost of the goodwill property otherwise determined in respect of the particular business and the portion of the proceeds attributable to goodwill, and

ii.  the cost of the goodwill property in respect of the particular business is reduced at that time by the amount determined under subparagraph i; and

(d)  if subparagraph c applies to more than one disposition of goodwill at the same time, that subparagraph c and section 93.19 apply as if each disposition had occurred separately in the order determined in its respect in accordance with paragraph d of subsection 34 of section 13 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)).

Chapter V.2 of Title II of Book I applies to each of the dispositions referred to in subparagraph d of the first paragraph in relation to the order determined in its respect in accordance with paragraph d of subsection 34 of section 13 of the Income Tax Act.

2004, c. 8, s. 19; 2009, c. 15, s. 50; 2019, c. 14, s. 73.

2009-06-04

93.14. Notwithstanding paragraph a of section 130R205 of the Regulation respecting the Taxation Act (chapter I-3, r. 1), the classes of property prescribed for the purposes of any regulations made under paragraph a of section 130 or section 130.1 are deemed to include, for taxation years that end after 31 December 1987 and before 6 December 1996, property of a taxpayer that, if the Act were read without reference to Divisions I to IV.1 of Chapter X of Title VI, would be included in one of the classes.

2004, c. 8, s. 19; 2009, c. 15, s. 50.

2006-03-01

93.14. Notwithstanding paragraph a of section 130R101 of the Regulation respecting the Taxation Act (R.R.Q., 1981, chapter I-3, r.1), the classes of property prescribed for the purposes of any regulations made under paragraph a of section 130 or section 130.1 are deemed to include, for taxation years that end after 31 December 1987 and before 6 December 1996, property of a taxpayer that, if the Act were read without reference to Divisions I to IV.1 of Chapter X of Title VI, would be included in one of the classes.

2004, c. 8, s. 19.