Income Tax Act — I-3.3 259
Proportional holdings in trust property 259 (1) For the purposes of designated provisions, if at any time a specified taxpayer acquires, holds or disposes of a particular unit in a qualified trust and the qualified trust elects for any period that includes that time to have this subsection apply, (a) the taxpayer shall be deemed not to acquire, hold or dispose of at that time, as the case may be, the particular unit; (b) where the taxpayer holds the particular unit at that time, the taxpayer shall be deemed to hold at that time that proportion (referred to in this subsection as the “specified portion”) of each property (in this subsection referred to as a “relevant property”) held by the trust at that time that one (or, where the particular unit is a fraction of a whole unit, that fraction) is of the number of units of the trust outstanding at that time; (c) [Repealed, 2005, c. 30, s. 18] (d) where that time is the later of (i) the time the trust acquires the relevant property, and (ii) the time the taxpayer acquires the particular unit, the taxpayer shall be deemed to acquire the specified portion of a relevant property at that time; (e) where that time is the time the specified portion of a relevant property is deemed by paragraph 259(1)(d) to have been acquired, the fair market value of the specified portion of the relevant property at that time shall be deemed to be the specified portion of the fair market value of the relevant property at the time of its acquisition by the trust; (f) where that time is the time immediately before the time the trust disposes of a particular relevant property, the taxpayer shall be deemed to dispose of, immediately after that time, the specified portion of the particular relevant property for proceeds equal to the specified portion of the proceeds of disposition to the trust of the particular relevant property; (g) where that time is the time immediately before the time the taxpayer disposes of the particular unit, the taxpayer shall be deemed to dispose of, immediately after that time, the specified portion of each relevant property for proceeds equal to the specified portion of the fair market value of that relevant property at that time; and (h) where the taxpayer is deemed because of this subsection (i) to have acquired a portion of a relevant property as a consequence of the acquisition of the particular unit by the taxpayer and the acquisition of the relevant property by the trust, and (ii) subsequently to have disposed of the specified portion of the relevant property, the specified portion of the relevant property shall, for the purposes of determining the consequences under this Act of the disposition and without affecting the proceeds of disposition of the specified portion of the relevant property, be deemed to be the portion of the relevant property referred to in subparagraph 259(1)(h)(i). (2) [Repealed, 2005, c. 30, s. 18] Election (3) An election by a qualified trust under subsection (1) shall be made by the qualified trust filing a prescribed form with the Minister and shall apply for the period (a) that begins on the later of (i) the day that is 15 months before the day on which the election is filed, and (ii) the day, if any, that is designated by the qualified trust in the election; and (b) that ends on the earlier of (i) the day on which the qualified trust files with the Minister a notice of revocation of the election, and (ii) the day, if any, that is designated by the qualified trust in the notice of revocation and that is not before the day that is 15 months before the day on which the notice of revocation is filed. Requirement to provide information (4) Where a qualified trust elects under subsection (1), (a) it shall provide notification of the election (i) within 30 days after making the election, to each person who held a unit in the qualified trust at any time in the period before the election was made and during which the election is applicable, and (ii) at the