Income Tax Act — I-3.3 144
)(p), and (iii) in any other case, nil. ( fraction inutilisée du solde des gains en capital exonérés ) No tax while trust governed by plan (2) No tax is payable under this Part by a trust on the taxable income of the trust for a taxation year throughout which the trust is governed by an employees profit sharing plan. Allocation contingent or absolute taxable (3) There shall be included in computing the income for a taxation year of an employee who is a beneficiary under an employees profit sharing plan each amount that is allocated to the employee contingently or absolutely by the trustee under the plan at any time in the year otherwise than in respect of (a) a payment made by the employee to the trustee; (b) a capital gain made by the trust before 1972; (c) a capital gain of the trust for a taxation year ending after 1971; (d) a gain made by the trust after 1971 from the disposition of a capital property except to the extent that the gain is a capital gain described in paragraph 144(3)(c); or (e) a dividend received by the trust from a taxable Canadian corporation. (f) [Repealed, 1994, c. 21, s. 68(2)] Allocated capital gains and losses (4) Each capital gain and capital loss of a trust governed by an employees profit sharing plan from the disposition of any property shall, to the extent that it is allocated by the trust to an employee who is a beneficiary under the plan, be deemed to be a capital gain or capital loss, as the case may be, of the employee from the disposition of that property for the taxation year of the employee in which the allocation was made and, for the purposes of section 110.6, the property shall be deemed to have been disposed of by the employee on the day on which it was disposed of by the trust. Idem (4.1) Notwithstanding subsection 26(6) of the Income Tax Application Rules , where at any time before 1976 the trustee of a trust governed by an employees profit sharing plan so elects in prescribed manner, the trust shall be deemed (a) to have, on December 31, 1971, disposed of each property owned by the trust on that day for proceeds of disposition equal to the fair market value of the property on that day, and (b) to have, on January 1, 1972, reacquired each property described in paragraph 144(4.1)(a) for the amount referred to in that paragraph, if the trustee under the plan has, before 1976, allocated the total of all capital gains and capital losses resulting from the deemed dispositions among the employees or other beneficiaries under the plan to the extent that the trustee under the plan has not previously so allocated them. Idem (4.2) Where a trust governed by an employees profit sharing plan (a) was governed by an employees profit sharing plan on December 31, 1971, and the trustee of the trust has made an election under subsection 144(4.1), or (b) was not governed by an employees profit sharing plan on December 31, 1971, the trustee of the trust may, in any taxation year after 1973, elect in prescribed manner and prescribed form to treat any capital property of the trust as having been disposed of, in which event the property shall be deemed to have been disposed of on any day designated by the trustee for proceeds of disposition equal to (c) the fair market value of the property on that day, (d) the adjusted cost base to the trust of the property on that day, or (e) an amount that is neither greater than the greater of the amounts determined under paragraphs 144(4.2)(c) and 144(4.2)(d) nor less than the lesser of the amounts determined under those paragraphs whichever is designated by the trustee and to have been reacquired by the trust immediately thereafter at a cost equal to those proceeds. Employer’s contribution to trust deductible (5) An amount paid by an employer to a trustee under an employees profit sharing plan during a taxation year or within 120 days thereafter may be deducted in computing the employer’s income for the taxation year to the extent that it was not deductible in comput