Income Tax Act — I-3.3 116
Disposition by non-resident person of certain property 116 (1) If a non-resident person proposes to dispose of any taxable Canadian property (other than property described in subsection (5.2) and excluded property) the non-resident person may, at any time before the disposition, send to the Minister a notice setting out (a) the name and address of the person to whom he proposes to dispose of the property (in this section referred to as the “proposed purchaser”); (b) a description of the property sufficient to identify it; (c) the estimated amount of the proceeds of disposition to be received by the non-resident person for the property; and (d) the amount of the adjusted cost base to the non-resident person of the property at the time of the sending of the notice. Certificate in respect of proposed disposition (2) Where a non-resident person who has sent to the Minister a notice under subsection 116(1) in respect of a proposed disposition of any property has (a) paid to the Receiver General, as or on account of tax under this Part payable by the non-resident person for the year, 25% of the amount, if any, by which the estimated amount set out in the notice in accordance with paragraph 116(1)(c) exceeds the amount set out in the notice in accordance with paragraph 116(1)(d), or (b) furnished the Minister with security acceptable to the Minister in respect of the proposed disposition of the property, the Minister shall forthwith issue to the non-resident person and the proposed purchaser a certificate in prescribed form in respect of the proposed disposition, fixing therein an amount (in this section referred to as the “certificate limit”) equal to the estimated amount set out in the notice in accordance with paragraph 116(1)(c). Notice to Minister (3) Every non-resident person who in a taxation year disposes of any taxable Canadian property of that person (other than property described in subsection 116(5.2) and excluded property) shall, not later than 10 days after the disposition, send to the Minister, by registered mail, a notice setting out (a) the name and address of the person to whom the non-resident person disposed of the property (in this section referred to as the “purchaser”), (b) a description of the property sufficient to identify it, and (c) a statement of the proceeds of disposition of the property and the amount of its adjusted cost base to the non-resident person immediately before the disposition, unless the non-resident person has, at any time before the disposition, sent to the Minister a notice under subsection 116(1) in respect of any proposed disposition of that property and (d) the purchaser was the proposed purchaser referred to in that notice, (e) the estimated amount set out in that notice in accordance with paragraph 116(1)(c) is equal to or greater than the proceeds of disposition of the property, and (f) the amount set out in that notice in accordance with paragraph 116(1)(d) does not exceed the adjusted cost base to the non-resident person of the property immediately before the disposition. Certificate in respect of property disposed of (4) Where a non-resident person who has sent to the Minister a notice under subsection 116(3) in respect of a disposition of any property has (a) paid to the Receiver General, as or on account of tax under this Part payable by the non-resident person for the year, 25% of the amount, if any, by which the proceeds of disposition of the property exceed the adjusted cost base to the non-resident person of the property immediately before the disposition, or (b) furnished the Minister with security acceptable to the Minister in respect of the disposition of the property, the Minister shall forthwith issue to the non-resident person and the purchaser a certificate in prescribed form in respect of the disposition. Liability of purchaser (5) Where in a taxation year a purchaser has acquired from a non-resident person any taxable Canadian property (other than depreciable prop