Income Tax Act — I-3.3 110.61
to consider that one of the main reasons for an individual acquiring, holding or having an interest in a partnership or trust (other than an interest in a personal trust) or for the existence of any terms, conditions, rights or other attributes of the interest is to enable the individual to receive or have allocated to the individual a percentage of any capital gain or taxable capital gain of the partnership or trust that is larger than the individual’s percentage of the income of the partnership or trust, as the case may be, despite any other provision of this Act, no amount may be deducted under subsection (2) by the individual in respect of any such gain allocated or distributed to the individual. Related persons, etc. (11) For the purposes of this section, (a) a taxpayer shall be deemed to have disposed of shares that are identical properties in the order in which the taxpayer acquired them; (b) a personal trust shall be deemed (i) to be related to a person or partnership for any period throughout which the person or partnership was a beneficiary of the trust, and (ii) in respect of shares of the capital stock of a corporation, to be related to the person from whom it acquired those shares if, at the time the trust disposed of the shares, all of the beneficiaries (other than registered charities) of the trust were related to that person or would have been so related if that person were living at that time; (b.1) a spouse or common-law partner of a particular individual includes another individual who was a spouse or common-law partner of the particular individual immediately before the death of the other individual; (c) a partnership shall be deemed to be related to a person for any period throughout which the person was a member of the partnership; (d) a person who is a member of a partnership that is a member of another partnership is deemed to be a member of the other partnership; (e) if a corporation acquires shares of a class of the capital stock of another corporation from any person, it shall be deemed in respect of those shares to be related to the person if all or substantially all the consideration received by that person from the corporation in respect of those shares was common shares of the capital stock of the corporation; and (f) shares issued by a corporation to a particular person or partnership shall be deemed to have been owned immediately before their issue by a person who was not related to the particular person or partnership unless the shares were issued (i) as consideration for other shares, (ii) as part of a transaction or series of transactions in which the person or partnership disposed of property to the corporation that consisted of (A) all or substantially all the assets used in an active business carried on by that person or the members of that partnership, or (B) an interest in a partnership all or substantially all the assets of which were used in an active business carried on by the members of the partnership, or (iii) as payment of a stock dividend. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2024, c. 17, s. 80 2026, c. 3, s. 36