Income Tax Act — I-3.3 69
ir market value immediately before the winding-up; (c) subsections 52(1) and (2) do not apply for the purposes of determining the cost to the shareholder of the property; and (d) subsections 13(21.2), 18(15) and 40(3.4) and (3.6) do not apply in respect of any property disposed of on the winding-up. (e) [Repealed, 1998, c. 19, s. 107] (6) to (10) [Repealed, 2003, c. 28, s. 8] Deemed proceeds of disposition (11) Where, at any particular time as part of a series of transactions or events, a taxpayer disposes of property for proceeds of disposition that are less than its fair market value and it can reasonably be considered that one of the main purposes of the series is (a) to obtain the benefit of (i) any deduction (other than a deduction under section 110.6, 110.61 or 110.62 in respect of a capital gain from a disposition of a share acquired by the taxpayer in an acquisition to which subsection 85(3) or 98(3) applied) in computing income, taxable income, taxable income earned in Canada or tax payable under this Act, or (ii) any balance of undeducted outlays, expenses or other amounts available to a person (other than a person that would be affiliated with the taxpayer immediately before the series began, if section 251.1 were read without reference to the definition controlled in subsection 251.1(3)) in respect of a subsequent disposition of the property or property substituted for the property, or (b) to obtain the benefit of an exemption available to any person from tax payable under this Act on any income arising on a subsequent disposition of the property or property substituted for the property, notwithstanding any other provision of this Act, where the subsequent disposition occurs, or arrangements for the subsequent disposition are made, before the day that is 3 years after the particular time, the taxpayer is deemed to have disposed of the property at the particular time for proceeds of disposition equal to its fair market value at the particular time. Reassessments (12) Notwithstanding subsections 152(4) to 152(5), the Minister may at any time make any assessments or reassessments of the tax, interest and penalties payable by the taxpayer that are necessary to give effect to subsection 69(11). (12.1) and (12.2) [Repealed, 1998, c. 19, s. 107] Amalgamation or merger (13) Where there is an amalgamation or merger of a corporation with one or more other corporations to form one corporate entity (in this subsection referred to as the “new corporation”), each property of the corporation that becomes property of the new corporation as a result of the amalgamation or merger is deemed, for the purpose of determining whether subsection 69(11) applies to the amalgamation or merger, to have been disposed of by the corporation immediately before the amalgamation or merger for proceeds equal to (a) in the case of a Canadian resource property or a foreign resource property, nil; and (b) in the case of any other property, the cost amount to the corporation of the property immediately before the amalgamation or merger. New taxpayer (14) For the purpose of subsection 69(11), where a taxpayer is incorporated or otherwise comes into existence at a particular time during a series of transactions or events, the taxpayer is deemed (a) to have existed at the time that was immediately before the series began; and (b) to have been affiliated at that time with every person with whom the taxpayer is affiliated (otherwise than because of a right referred to in paragraph 251(5)(b)) at the particular time. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 69; 1994, c. 7, Sch. II, s. 47, Sch. VIII, s. 27, c. 21, s. 32; 1998, c. 19, s. 107; 2001, c. 17, s. 51; 2003, c. 28, s. 8; 2013, c. 34, s. 208(E); 2014, c. 39, s. 12; 2016, c. 12, s. 19 2026, c. 3, s. 17