Income Tax Act — I-3.3 132.2
cular time after the acquisition time but within the 60-day period commencing immediately after the transfer time, and paid before the end of that period, by the transferor to taxpayers that held shares of a class of shares of the transferor, that was recognized under securities legislation as or as part of an investment fund, immediately before the transfer time is deemed to have become payable at the first intervening time if the transferor so elects in respect of the full amount of the dividend in prescribed manner on or before the day on which any part of the dividend was paid; (m) for the purpose of determining the funds’ capital gains redemptions (as defined in subsection 131(6) or 132(4), as the case may be), for their taxation years that include the transfer time, (i) the total of the cost amounts to the transferor of all its properties at the end of the year is deemed to be the total of all amounts each of which is (A) the transferor’s proceeds of disposition of a property that was transferred to a transferee on the qualifying exchange, or (B) the cost amount to the transferor at the end of the year of a property that was not transferred on the qualifying exchange, (ii) a transferee is deemed not to have acquired any property that was transferred to it on the qualifying exchange, and (iii) the amounts determined under the descriptions of A and B in the definition capital gains redemptions shall be determined as if the year ended immediately before the transfer time; (n) except as provided in subparagraph (l)(i), the transferor is, notwithstanding subsections 131(8) and (8.01) and 132(6), deemed to be neither a mutual fund corporation nor a mutual fund trust for taxation years that begin after the transfer time; and (o) for the purpose of applying subsection 132(5.31) to a fund for a taxation year that includes the transfer time, the following amounts are to be determined as if the taxation year ended immediately before the transfer time: (i) if paragraph 132(5.31)(a) applies, the amounts determined under the descriptions of B, C and D in that paragraph, and (ii) if paragraph 132(5.31)(b) applies, (A) the amounts determined for B and C in paragraph 132(5.31)(a), for the purpose of subparagraph 132(5.31)(b)(i), (B) the amounts determined for D, E, F and G in clause 132(5.31)(b)(i)(C), and (C) the amounts determined for H, I and J in subparagraph 132(5.31)(b)(ii). Qualifying exchange — non-depreciable property (4) If a transferor transfers a property, other than a depreciable property, to a transferee in a qualifying exchange, (a) the transferee is deemed to have acquired the property at the acquisition time and not to have acquired the property at the transfer time; (b) the transferor’s proceeds of disposition of the property and the transferee’s cost of the property are deemed to be the lesser of (i) the fair market value of the property at the transfer time, and (ii) the greatest of (A) the cost amount to the transferor of the property at the transfer time, (B) the amount that the transferor and the transferee agree on in respect of the property in their election, and (C) the fair market value at the transfer time of the consideration (other than units of the transferee) received by the transferor for the disposition of the property; and (c) if the property is a unit of the transferee and the unit ceases to exist when the transferee acquires it (or, for greater certainty, when the transferee would but for that cessation have acquired it), paragraphs (a) and (b) do not apply to the transferee. Depreciable property (5) If a transferor transfers a depreciable property to a transferee in a qualifying exchange, (a) the transferor is deemed to have disposed of the property at the depreciables disposition time, and not to have disposed of the property at the transfer time; (b) the transferee is deemed to have acquired the property at the depreciables acquisition time, and not to have acquired the property at the transfer tim