31.1 (1) In this section, “Ontario corporation” has the same meaning as in subsection 29.1 (1); (“société ontarienne”) “Ontario partnership” has the same meaning as in subsection 29.1 (1). (“société de personnes ontarienne”)  1997, c. 42, Sched. A, s. 13 (1); 2004, c. 16, s. 2 (2). Elections (2) The following rules apply in respect of elections under provisions of the Income Tax Act
(Canada) that apply for the purposes of this Subdivision: 1. No election may be made by a corporation and the members of a partnership for the purposes of this Act unless the election has been properly made by the corporation and the members of the partnership for the purposes of the Income Tax Act (Canada). 2. If the amount elected or deemed to have been elected for the purposes of the Income Tax Act
(Canada) is different from the amount that would be elected or deemed to have been elected for the purposes of this Act, without reference to section 5.1, the amount determined for the purposes of the Income Tax Act (Canada) shall apply for the purposes of this Act.  1997, c. 42, Sched. A, s. 13 (1); 2004, c. 16, s. 2 (2). Exception to subs. (2) (3) Paragraph 2 of subsection (2) does not apply if, (a) the property in respect of which an election is made is property described in subclause 5.1 (8) (a) (iii) or prescribed in the regulations and the conditions described in clauses (7) (a) and (b) would not be met if subsection (7) applied on the disposition of the property; or (b) the rules or conditions prescribed by the regulations have been satisfied and the conditions described in clauses (7) (a) and (b) would not be met if subsection (7) applied on the disposition of the property.  2001, c. 23, s. 28 (1); 2004, c. 16, s. 2 (2). Elected amounts (4) If every corporation required to make an election referred to in subsection (2), in respect of a disposition occurring after May 4, 1998, is an Ontario corporation for the taxation year to which the election relates, and the partnership whose partners are required to make the election is an Ontario partnership for the fiscal period to which the election relates, or the conditions or rules prescribed by the regulations are satisfied, the corporation and members of the partnership making an election under the Income Tax Act (Canada) may, upon delivering a joint election in a form approved by the Minister within the time specified in subsection 96 (4) of the Income Tax Act
(Canada) as it reads for the purposes of this section, elect an amount in respect of the disposition equal to, (a) the amount elected or deemed to have been elected in respect of the property under the Income Tax Act
(Canada); (b) the amount elected or deemed to have been elected in respect of the property under the Income Tax Act
(Canada), less the cost amount of the property for the purposes of that Act, plus the cost amount of the property for the purposes of this Act, calculated immediately before the disposition to which the election relates; or (c) an amount that is greater than the lesser of the amounts described in clauses (a) and (b), but less than the greater of the amounts described in clauses (a) and (b).  1998, c. 34, s. 35; 2004, c. 16, s. 2 (2). Same (5) If the property in respect of which an election is made under the Income Tax Act (Canada), in respect of a disposition occurring after May 4, 1998, is property referred to in subclause 5.1 (8) (a) (i) or (ii), the corporations and members of the partnership making the election, if each of them has a permanent establishment in Ontario, may, upon delivering a joint election in a form approved by the Minister within the time specified in subsection 96 (4) of the Income Tax Act (Canada) as it reads for the purposes of this section, elect an amount in respect of the property equal to, (a) the amount elected or deemed to have been elected in respect of the property under the Income Tax Act
(Canada); (b) the amount elected or deemed to have been elected in respect of the property under the Income Tax Act
(Canada), less the cost amount of the property for the purposes of that Act, plus the cost amount of the property for the purposes of this Act, calculated immediately before the disposition to which the election relates; or (c) an amount that is greater than the lesser of the amounts described in clauses (a) and (b), but less than the greater of the amounts described in clauses (a) and (b).  1998, c. 34, s. 35; 2004, c. 16, s. 2 (2). Anti-avoidance (6) Subsection (4) does not apply in respect of the disposition of a property occurring after May 4, 1998 if, (a) the partnership that holds the property immediately after the disposition, (i) ceases to be an Ontario partnership within 36 months after the end of its fiscal period to which the election relates and still holds the property immediately after it ceases to be an Ontario corporation, or (ii) disposes of the property within 36 months after the end of its fiscal period to which the election relates; or (b) it is reasonable to believe that one of the reasons the partnership, a member of the partnership or any other person conducted their business and affairs in a manner that resulted in the partnership being an Ontario partnership for the fiscal period to which the election relates is to increase or reduce an amount elected for the purposes of this Act.  1998, c. 34, s. 35; 2004, c. 16, s. 2 (2). Same (7) Subsection (5) does not apply in respect of the disposition of a property occurring after May 4, 1998 referred to in that subsection if, (a) within 36 months after the end of its fiscal period to which the election relates, (i) the partnership that holds the property immediately after the disposition, disposes of the property, or (ii) the percentage of the partnership’s income for the fiscal period that would be deemed to have been earned outside Ontario for the purposes of section 39, if the partnership were a corporation, its fiscal period were its taxation year and it had income for the fiscal period, is at least 10 percentage points less than the percentage of its income that would be deemed to be earned outside Ontario for the fiscal period to which the election relates; or (b) it is reasonable to believe that one of the reasons for the manner in which the partnership, a member of the partnership or any other person has conducted their business and affairs is to increase or reduce an amount elected for the purposes of this Act.  1998, c. 34, s. 35; 2001, c. 23, s. 28 (2); 2004, c. 16, s. 2 (2). Deemed fair market value of the consideration (8) The amount agreed upon by a corporation and the members of a partnership in an election in respect of the disposition of property to which subsection (3), (4) or (5) applies is deemed to be the fair market value of the consideration received by the transferor on the disposition of the property if the amount agreed upon in the election is more than the fair market value, as determined at the time of the disposition, of the consideration or the portion of the consideration received by the transferor that is not in the form of shares or a right to receive shares in the capital stock of a corporation.  2001, c. 23, s. 28 (3); 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 1997, c. 43, Sched. A, s. 13 (1, 2) - 06/05/1997; 1998, c. 34, s. 35 - 05/05/1998 2001, c. 23, s. 28 (1-3) - 05/12/2001 2004, c. 16, s. 2 (2)
- 01/01/2004 Subdivision J — Beneficiaries of Trusts