Income Tax Act — I-3.3 18
he taxpayer, where the transferor is the affiliate or is a partnership of which the affiliate is a member, property that is, or would be, if the transferor were a foreign affiliate of the taxpayer, excluded property (within the meaning assigned by subsection 95(1)) of the transferor); (b) the disposition is not described in any of paragraphs (c) to (g) of the definition superficial loss in section 54; (c) the transferor is not an insurer; (d) the ordinary business of the transferor includes the lending of money and the particular property was used or held in the ordinary course of that business; (e) the particular property is a share, or a loan, bond, debenture, mortgage, hypothecary claim, note, agreement for sale or any other indebtedness; (f) the particular property was, immediately before the disposition, not a capital property of the transferor; (g) during the period that begins 30 days before and ends 30 days after the disposition, the transferor or a person affiliated with the transferor acquires a property (in this subsection and subsection 18(15) referred to as the “substituted property”) that is, or is identical to, the particular property; and (h) at the end of the period, the transferor or a person affiliated with the transferor owns the substituted property. When s. (15) applies to adventurers in trade (14) Subsection 18(15) applies where (a) a person (in this subsection and subsection 18(15) referred to as the “transferor”) disposes of a particular property; (b) the particular property is described in an inventory of a business that is an adventure or concern in the nature of trade; (c) the disposition is not a disposition that is deemed to have occurred by subsection 10.1(6) or (7), section 70, subsection 104(4), section 128.1, paragraph 132.2(3)(a) or (c) or subsection 138(11.3) or 138.2(4) or 149(10); (d) during the period that begins 30 days before and ends 30 days after the disposition, the transferor or a person affiliated with the transferor acquires property (in this subsection and subsection 18(15) referred to as the “substituted property”) that is, or is identical to, the particular property; and (e) at the end of the period, the transferor or a person affiliated with the transferor owns the substituted property. Loss on certain properties (15) If this subsection applies because of subsection 18(13) or 18(14) to a disposition of a particular property, (a) the transferor’s loss, if any, from the disposition is deemed to be nil, and (b) the amount of the transferor’s loss, if any, from the disposition (determined without reference to this subsection) is deemed to be a loss of the transferor from a disposition of the particular property at the first time, after the disposition, (i) at which a 30-day period begins throughout which neither the transferor nor a person affiliated with the transferor owns (A) the substituted property, or (B) a property that is identical to the substituted property and that was acquired after the day that is 31 days before the period begins, (ii) at which the substituted property would, if it were owned by the transferor, be deemed by section 128.1 or subsection 149(10) to have been disposed of by the transferor, (iii) that is immediately before the transferor is subject to a loss restriction event, or (iv) if the transferor is a corporation, (A) for the purposes of computing the transferor’s foreign accrual property income, exempt surplus or exempt deficit, and taxable surplus or taxable deficit, in respect of a taxpayer for a taxation year of the transferor where the transferor is a foreign affiliate of the taxpayer, at which the liquidation and dissolution of the transferor begins, unless the liquidation and dissolution is (I) a qualifying liquidation and dissolution (within the meaning assigned by subsection 88(3.1)) of the transferor, or (II) a designated liquidation and dissolution (within the meaning assigned by subsection 95(1)) of the transferor, and (B) for any other p