Income Tax Act — I-3.3 110.1
base to the corporation of the property immediately before that time, and (ii) in any other case, the adjusted cost base to the corporation of the property immediately before that time. Gifts of capital property (3) If this subsection applies in respect of a gift by a corporation of property, and the corporation designates an amount in respect of the gift in its return of income under section 150 for the year in which the gift is made, the amount so designated is deemed to be its proceeds of disposition of the property and, for the purpose of subsection 248(31), the fair market value of the gift, but the amount so designated may not exceed the fair market value of the property otherwise determined and may not be less than the greater of (a) in the case of a gift made after December 20, 2002, the amount of the advantage, if any, in respect of the gift, and (b) the amount determined under subparagraph (2.1)(b)(i) or (ii), as the case may be, in respect of the property. Gifts made by partnership (4) If at the end of a fiscal period of a partnership a corporation is a member of the partnership, its share of any amount that would, if the partnership were a person, be the eligible amount of a gift made by the partnership to any donee is, for the purpose of this section, deemed to be the eligible amount of a gift made to that donee by the corporation in its taxation year in which the fiscal period of the partnership ends. Ecological gifts (5) For the purposes of applying subparagraph 69(1)(b)(ii), this section and section 207.31 in respect of a gift described in paragraph (1)(d) that is made by a taxpayer, the amount that is the fair market value (or, for the purpose of subsection (3), the fair market value otherwise determined) of the gift at the time the gift was made and, subject to subsection (3), the taxpayer’s proceeds of disposition of the gift, is deemed to be the amount determined by the Minister of the Environment to be (a) where the gift is land, the fair market value of the gift; or (b) where the gift is a covenant or an easement to which land is subject or, in the case of land in the Province of Quebec, a real or personal servitude, the greater of (i) the fair market value otherwise determined of the gift, and (ii) the amount by which the fair market value of the land is reduced as a result of the making of the gift. Non-qualifying securities (6) Subsections 118.1(13) to (14) and (16) to (20) apply to a corporation as if the references in those subsections to an individual were read as references to a corporation and as if a non-qualifying security of a corporation included a share (other than a share listed on a designated stock exchange) of the capital stock of the corporation. Corporation ceasing to exist (7) If, but for this subsection, a corporation (other than a corporation that was a predecessor corporation in an amalgamation to which subsection 87(1) applied or a corporation that was wound up in a winding-up to which subsection 88(1) applied) would be deemed by subsection 118.1(13) to have made a gift after the corporation ceased to exist, for the purpose of this section, the corporation is deemed to have made the gift in its last taxation year, except that the amount of interest payable under any provision of this Act is the amount that it would be if this subsection did not apply to the gift. (8) and (9) [Repealed, 2017, c. 20, s. 9] Options (10) Subject to subsections (12) and (13), if a corporation has granted an option to a qualified donee in a taxation year, no amount in respect of the option is to be included in computing an amount under any of paragraphs (1)(a) to (d) in respect of the corporation for any year. Application of subsection (12) (11) Subsection (12) applies if (a) an option to acquire a property of a corporation is granted to a qualified donee; (b) the option is exercised so that the property is disposed of by the corporation and acquired by the qualified donee at a particular time; and (c) e