Income Tax Act — I-3.3 18
meaning assigned by subsection 88(3.1)) of the transferor, or (II) a designated liquidation and dissolution (within the meaning assigned by subsection 95(1)) of the transferor, and (B) for any other purposes, at which the winding-up (other than a winding-up to which subsection 88(1) applies) of the transferor begins, and and for the purpose of paragraph 18(15)(b), where a partnership otherwise ceases to exist at any time after the disposition, the partnership is deemed not to have ceased to exist, and each person who was a member of the partnership immediately before the partnership would, but for this subsection, have ceased to exist is deemed to remain a member of the partnership, until the time that is immediately after the first time described in subparagraphs 18(15)(b)(i) to (iv). Deemed identical property (16) For the purposes of subsections (13), (14) and (15), a right to acquire a property (other than a right, as security only, derived from a mortgage, hypothec, agreement for sale or similar obligation) is deemed to be a property that is identical to the property. Definitions (17) The following definitions apply in this subsection and subsections (18) to (23). offsetting position , in respect of a particular position of a person or partnership (in this definition referred to as the “holder”), means one or more positions that (a) are held by (i) the holder, (ii) a person or partnership that does not deal at arm’s length with, or is affiliated with, the holder (in this subsection and subsections (20), (22) and (23) referred to as the “connected person”), or (iii) for greater certainty, by any combination of the holder and one or more connected persons; (b) have the effect, or would have the effect if each of the positions held by a connected person were held by the holder, of eliminating all or substantially all of the holder’s risk of loss and opportunity for gain or profit in respect of the particular position; and (c) if held by a connected person, can reasonably be considered to have been held with the purpose of obtaining the effect described in paragraph (b). ( position compensatoire ) position , of a person or partnership, means one or more properties, obligations or liabilities of the person or partnership, if (a) each property, obligation or liability is (i) a share in the capital stock of a corporation, (ii) an interest in a partnership, (iii) an interest in a trust, (iv) a commodity, (v) foreign currency, (vi) a swap agreement, a forward purchase or sale agreement, a forward rate agreement, a futures agreement, an option agreement or a similar agreement, (vii) a debt owed to or owing by the person or partnership that, at any time, (A) is denominated in a foreign currency, (B) would be described in paragraph 7000(1)(d) of the Income Tax Regulations if that paragraph were read without reference to the words “other than one described in paragraph (a), (b) or (c)”, or (C) is convertible into or exchangeable for an interest, or for civil law a right, in any property that is described in any of subparagraphs (i) to (iv), (viii) an obligation to transfer or return to another person or partnership a property identical to a particular property described in any of subparagraphs (i) to (vii) that was previously transferred or lent to the person or partnership by that other person or partnership, or (ix) an interest, or for civil law a right, in any property that is described in any of subparagraphs (i) to (vii); and (b) it is reasonable to conclude that, if there is more than one property, obligation or liability, each of them is held in connection with each other. ( position ) successor position , in respect of a position (in this definition referred to as the “initial position”), means a particular position if (a) the particular position is an offsetting position in respect of a second position; (b) the second position was an offsetting position in respect of the initial position that was disposed of at a particular ti