Income Tax Act — I-3.3 164
(4.1), or an amount applied under subsection (2) in respect of a repayment, can reasonably be regarded as being in respect of a claim made by the taxpayer in an objection to or appeal from an assessment of tax for a taxation year for a deduction or exclusion described in subsection (5) in respect of a subsequent taxation year, interest shall not be paid or applied on the portion for any part of a period that is before the latest of the dates described in paragraphs (5)(i) to (l). Disposition by legal representative of deceased (6) If in the course of administering the graduated rate estate of a taxpayer, the taxpayer’s legal representative has, in a taxation year (in this subsection referred to as the “particular year”) that is within the first three taxation years of the estate, (a) disposed of capital property of the estate so that the total of all amounts each of which is a capital loss from the disposition of a property in the particular year exceeds the total of all amounts each of which is a capital gain from the disposition of a property in the particular year, or (b) disposed of all of the depreciable property of a prescribed class of the estate so that the undepreciated capital cost to the estate of property of that class at the end of the particular year is, by virtue of subsection 20(16) or any regulation made under paragraph 20(1)(a), deductible in computing the income of the estate for the particular year, despite any other provision of this Act, the following rules apply: (c) such parts of one or more capital losses of the estate from the disposition of properties in the particular year (the total of which is not to exceed the excess referred to in paragraph (a)) as the legal representative so elects, in prescribed form and manner on or before the filing-due date for the particular taxation year of the estate, are deemed (except for the purpose of subsection 112(3) and this paragraph) to be capital losses of the deceased taxpayer from the disposition of the properties by the taxpayer in the taxpayer’s last taxation year and not to be capital losses of the estate from the disposition of those properties, (d) such part of the amount of any deduction described in paragraph (b) (not exceeding the amount that, but for this subsection, would be the total of the non-capital loss and the farm loss of the estate for the particular year) as the legal representative so elects, in prescribed form and manner on or before the filing-due date for the particular year of the estate, is deductible in computing the income of the taxpayer for the taxpayer’s last taxation year and is not deductible in computing any loss of the estate, (e) the legal representative shall, at or before the time prescribed for filing the election referred to in paragraphs (c) and (d), file a prescribed form amending the return of income of the deceased taxpayer for the taxpayer’s last taxation year to give effect to the rules in those paragraphs, and (f) in computing the taxable income of the deceased taxpayer for a taxation year preceding the taxpayer’s last taxation year, no amount may be deducted in respect of an amount referred to in paragraph (c) or (d). Realization of deceased employees’ options (6.1) Despite any other provision of this Act, if a right to acquire securities (as defined in subsection 7(7)) under an agreement in respect of which a benefit was deemed by paragraph 7(1)(e) to have been received by a taxpayer (in this subsection referred to as the “right”) is exercised or disposed of by the taxpayer’s legal representative in a taxation year that is within the first three taxation years of the graduated rate estate of the taxpayer and the representative so elects in prescribed form and manner on or before the filing-due date for the taxation year of the estate, (a) the amount, if any, by which (i) the amount of the benefit deemed by paragraph 7(1)(e) to have been received by the taxpayer in respect of the right exceeds the total of (ii) t