Income Tax Act — I-3.3 128.1
Immigration 128.1 (1) For the purposes of this Act, where at a particular time a taxpayer becomes resident in Canada, Year-end, fiscal period (a) where the taxpayer is a corporation or a trust, (i) the taxpayer’s taxation year that would otherwise include the particular time shall be deemed to have ended immediately before the particular time and a new taxation year of the taxpayer shall be deemed to have begun at the particular time, and (ii) for the purpose of determining the taxpayer’s fiscal period after the particular time, the taxpayer shall be deemed not to have established a fiscal period before the particular time; Deemed disposition (b) the taxpayer is deemed to have disposed, at the time (in this subsection referred to as the “time of disposition”) that is immediately before the time that is immediately before the particular time, of each property owned by the taxpayer, other than, if the taxpayer is an individual, (i) property that is a taxable Canadian property, (ii) property that is described in the inventory of a business carried on by the taxpayer in Canada at the time of disposition, (iii) property included in Class 14.1 of Schedule II to the Income Tax Regulations , in respect of a business carried on by the taxpayer in Canada at the time of disposition, and (iv) an excluded right or interest of the taxpayer, other than an interest described in paragraph (k) of the definition excluded right or interest in subsection (10), (v) [Repealed, 2001, c. 17, s. 123] for proceeds equal to its fair market value at the time of disposition; Deemed acquisition (c) the taxpayer shall be deemed to have acquired at the particular time each property deemed by paragraph 128.1(1)(b) to have been disposed of by the taxpayer, at a cost equal to the proceeds of disposition of the property; Deemed dividend to immigrating corporation (c.1) if the taxpayer is a particular corporation that immediately before the time of disposition owned a share of the capital stock of another corporation resident in Canada, a dividend is deemed to have been paid by the other corporation, and received by the particular corporation, immediately before the time of disposition, equal to the amount, if any, by which the fair market value of the share immediately before the time of disposition exceeds the total of (i) the paid-up capital in respect of the share immediately before the time of disposition, and (ii) if the share immediately before the time of disposition was taxable Canadian property that is not treaty-protected property, the amount by which, at the time of disposition, the fair market value of the share exceeds its cost amount; Deemed dividend to shareholder of immigrating corporation (c.2) if the taxpayer is a corporation and an amount has been added to the paid-up capital in respect of a class of shares of the corporation’s capital stock because of paragraph (2)(b), (i) the corporation is deemed to have paid, immediately before the time of disposition, a dividend on the issued shares of the class equal to the amount of the paid-up capital adjustment in respect of the class, and (ii) a dividend is deemed to have been received, immediately before the time of disposition, by each person (other than a person in respect of whom the corporation is a foreign affiliate) who held any of the issued shares of the class equal to that proportion of the dividend so deemed to have been paid that the number of shares of the class held by the person immediately before the time of disposition is of the number of issued shares of the class outstanding immediately before the time of disposition; Foreign affiliate dumping — immigrating corporation (c.3) if the taxpayer is a corporation that was, immediately before the particular time, controlled by one non-resident person or, if no single non-resident person controlled the CRIC, a group of non-resident persons not dealing with each other at arm’s length (in this section, that one non-resident person, or each me