Income Tax Act — I-3.3 40
of which is that portion of the amount of a gain realized by the taxpayer at any time before the particular time, in respect of the foreign currency debt and because of subsection 111(12), that is reasonably attributable to (a) the relevant part of the foreign currency debt at the particular time, or (b) the forgiven amount, if any, (as defined in subsection 80(1)) in respect of the foreign currency debt at the particular time. Donated flow-through shares (12) If at any time a taxpayer disposes of one or more capital properties that are included in a flow-through share class of property and subparagraph 38(a.1)(i) or (iii) applies to the disposition (in this subsection referred to as the “actual disposition”), then the taxpayer is deemed to have a capital gain from a disposition at that time of another capital property equal to the lesser of (a) the taxpayer’s exemption threshold at that time in respect of the flow-through share class of property, and (b) the total of all amounts each of which is a capital gain from the actual disposition (for greater certainty, calculated without reference to this subsection). Class 14.1 — transitional rules (13) Subsection (14) applies in respect of a disposition by a taxpayer of a property that is included in Class 14.1 of Schedule II to the Income Tax Regulations in respect of a business of the taxpayer if (a) the property was an eligible capital property of the taxpayer immediately before January 1, 2017; (b) the amount determined for Q in the definition cumulative eligible capital in subsection 14(5) in respect of the business immediately before January 1, 2017 is greater than nil; (c) the amount determined for B in that definition in respect of the business immediately before January 1, 2017 is nil; and (d) no amount is included in the taxpayer’s income for a taxation year because of paragraph 13(38)(d). Class 14.1 — transitional rules (14) If this subsection applies in respect of a disposition at any time by a taxpayer of a property, the taxpayer’s capital gain from the disposition is to be reduced by such amount as the taxpayer claims, not exceeding the amount by which (a) 2/3 of the amount determined for Q in the definition cumulative eligible capital in subsection 14(5) in respect of the business immediately before 2017 exceeds (b) the total of all amounts each of which is an amount claimed under this subsection in respect of another disposition at or before that time. Class 14.1 — transitional rules (15) Subsection (16) applies in respect of a disposition by an individual of a property that is included in Class 14.1 of Schedule II to the Income Tax Regulations in respect of a business of the individual if (a) the property was an eligible capital property of the individual immediately before January 1, 2017; and (b) the individual’s exempt gains balance in respect of the business is greater than nil for the taxation year that includes January 1, 2017. Class 14.1 — transitional rules (16) If this subsection applies in respect of a disposition at any time by an individual of a property, the individual’s capital gain from the disposition is to be reduced by such amount as the individual claims, not exceeding the amount by which (a) twice the amount of the individual’s exempt gains balance in respect of the business for the taxation year that includes January 1, 2017 exceeds (b) the total of (i) if paragraph 13(38)(d) applies in respect of the business for the individual’s taxation year that includes January 1, 2017, the amount determined for D in paragraph 14(1)(b) for the purposes of paragraph 13(38)(d), and (ii) the total of all amounts each of which is an amount claimed under this subsection in respect of another disposition at or before that 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. 40; 1994, c. 7, Sch. II, s. 23, Sch. VIII, s. 12, c. 21, s. 15; 1995, c. 3, s. 12, c. 2