,canada ,rev5ue ,ag5cy #a ,9t]pret,n ,bullet9 ,subject3 ,9come ,tax ,act--,sale ( ,prop]ty--,:5 ,9clud$ 9 ,9come ,-put,n ,numb]3 ,,it-#agj;,r ,date3 ,augu/ #be1 #aihj ,ref];e3 ,p>agraphs #ab7#a77b71 #ac7#ba77c7 & subp>agraph #ed7c77;i7 7al sec;n #gi & subp>agraphs #ac7#ba77d77;i71 #ed7c77;v7 & #ed7h77;i77 ,at ! ,canada ,cu/oms & ,rev5ue ,ag5cy 7,,ccra71 we issue 9come tax 9t]pret,n bullet9s 7,,it's7 9 ord] 6provide te*nical 9t]pret,ns & posi;ns reg>d+ c]ta9 provi.ns 3ta9$ 9 9come tax law4 ,due 6_! te*nical nature1 ,,it's >e us$ prim>ily 0\r /aff1 tax speciali/s1 & o!r 9dividuals :o h an 9t]e/ 9 tax matt]s4 ,= ^? r1d]s :o pref] a less te*nical explan,n (! law1 we (f] o!r public,ns1 s* z tax guides & pamphlets4 #a  ,,it-#agj;,r a#a ,:ile ! -;ts 9 a "picul> p>agraph 9 an ,,it may relate 6provi.ns (! law 9 =ce at ! "t !y 7 made1 s* -;ts >e n a sub/itute =! law4 ,! r1d] %d1 "!=e1 3sid] s* -;ts 9 li tax,n ye> 2+ 3sid]$1 tak+ 96a3.t ! e6ect ( any relevant am5d;ts 6^? provi.ns or relevant c\rt deci.ns o3urr+ af ! date on : ! -;ts 7 made4 ,subject 6! abv1 an 9t]pret,n or posi;n 3ta9$ 9 an ,,it g5],y applies z (! date on : x 0 publi%$1 un.s o!rwise specifi$4 ,if "! is a subsequ5t *ange 9 t 9t]pret,n or posi;n &! *ange is b5eficial 6taxpay]s1 x is usu,y e6ective = future assess;ts & reassess;ts4 ,if1 on ! o!r h&1 ! *ange is n fav\ra# 6taxpay]s1 x w norm,y 2 e6ective =! curr5t & subsequ5t tax,n ye>s or = transac;ns 5t]$ 96af ! date on : ! *ange is publi%$4 ,if y h any -;ts reg>d+ matt]s 4cuss$ 9 an ,,it1 pl1se s5d !m to3 #b  ,,it-#agj;,r b#a ,manag]1 ,te*nical ,public,ns & ,projects ,sec;n ,9come ,tax ,rul+s ,directorate ,policy & ,legisl,n ,bran* ,canada ,cu/oms & ,rev5ue ,ag5cy ,ottawa ,,on ,k#a;,a #j;,l#e ,? bullet9 c.els & replaces ,,it-#agj dat$ ,augu/ #f1 #aigd4 ,3t5ts ,g5]al 7p>agraphs #a-d7 ,"t ( ,5title;t 7p>agraphs #e-h7 ,r1l ,prop]ty ,sales 7p>agraphs #i-aj7 ,sale ( ,%>es 7p>agraphs #aa-ah7 ,reacquisi;n ( ,prop]ty ,sold 7p>agraph #ai7 ,g5]al 7p>agraphs #a-d7 #a4 ,! -;ts 3ta9$ 9 ? bullet9 >e specific,y direct$ 6transac;ns t >e sales ( prop]ty & d n necess>ily #c  ,,it-#agj;,r c#a h applic,n 9 o!r situ,ns4 ,! -;ts >e 9applica# ": subsec;n #dd7#b7 (! ,act is applica# : specific,y provides a "t =! 9clu.n ( prop]ty sales 9 ! 9come -put,n4 #b4 ,:5 ! ^ws ( subp>agraph #ed7c77;i7 >e r1d 9 3junc;n ) subp>agraph #ed7h77;i71 x is evid5t t ! date ( 4posi;n ( capital prop]ty sold o3urs at ! "t t ! v5dor is 85titl$ to ''' ! sale price04 ,s9ce ! correspond+ provi.ns 9 p>agraph #ac7#ba77c7 & subp>agraph #ac7#ba77d77;i7 3ta9 ^! id5tical ^ws1 ! same 3clu.n foll[s 9 respect ( deprecia# prop]ty sold4 ,9 ? mann] ! date ( 4posi;n is giv5 a "s:at re/rict$ m1n+ :5 a 4posi;n ( capital prop]ty 9volves a sale4 #c4 ,": prop]ty is sold1 p>agraph #ab7#a77b7 requires an am.t 6be 9clud$ 9 ! -put,n (a taxpay]'s 9come f a busi;s at ! "t t ! am.t 2comes 8receiva# 0! taxpay]0 7un.s ! taxpay] is p]mitt$ 6use ! 8ca% basis0 ( #d  ,,it-#agj;,r d#a report+74 ,s9ce ! am.t t 2comes receiva# 9 respect ( prop]ty sold is ! sale price1 ! taxa# ev5t "u p>agraph #ab7#a77b7 9 respect (! sale ( prop]ty c 2 /at$ z o3ur+ on ! date t ! sale price 2comes receiva# 6! v5dor4 --------------------------------------#b #d4 ,subp>agraph #ed7c77;v7 makes x cle> =! purposes ( subdivi.n ;c ( ,divi.n ;,b ( ,"p #a t ! ,act is 9t]e/$ only 9 4posi;ns t 9volve a *ange 9 b5eficial [n]%ip 7un.s ! 3tr>y is expressly /at$74 ,? is al ! ,de"p;t's view 9 respect ( 4posi;ns ( deprecia# prop]ty describ$ 9 p>agraph #ac7#ba77c7 &! sale ( trad+ assets "u p>agraph #ab7#a77b74 ,a transac;n t c 2 describ$ z a 8sale0 is "!=e 4reg>d$ = purposes ( ? bullet9 if "! is no 3curr5t *ange 9 b5eficial [n]%ip4 ,s* transac;ns w usu,y 9volve a 8pur*as]0 :o c 2 describ$ z an ag5t1 nom9ee1 tru/ee or pr@ete-nom corpor,n (a 8v5dor0 :o basic,y reta9s ! "r #e  ,,it-#agj;,r a#b 6d1l )! prop]ty z ?\< x 7 8 [n4 7,see ,rul+ ,,tr-#bb = an example74 ,"t ( ,5title;t 7p>agraphs #e-h7 #e4 ,despite ! abs;e ( t]m9ology 9 p>agraph #ab7#a77b7 id5tical 6t f.d 9 sec;n #ed & subsec;n #ac7#ba7 7see p>agraphs #b & #c abv71 x is ! ,de"p;t's view t ! sale price ( any prop]ty sold is br"\ 96a3.t = 9come tax purposes :5 ! v5dor has an absolute b n necess>ily imm "r 6be pd4 ,z l;g z a 83di;n prec$5t0 rema9s unsatisfi$1 a v5dor does n h an absolute "r 6be pd4 ,h["e1 ! fact t an ev5t subsequ5t 6! -ple;n (a sale re/ores ! [n]%ip (! prop]ty 9volv$ 6! v5dor or adju/s ! sale price does n alt] ! fact t ! v5dor 0 at a "picul> "t 5titl$ 6! sale price & "!=e 4pos$ (! prop]ty = tax purposes at t "t4 ,simil>ly1 ! fact t a 3tract ( #f  ,,it-#agj;,r b#b sale is subject 6ratific,n is ( no 3sequ;e 9 det]m9+ a date ( 4posi;n un.s x is made a 3di;n prec$5t (! agree;t4 #f4 ,a 83di;n prec$5t0 is an ev5t 72y ! direct 3trol (! v5dor7 t susp5ds -ple;n (! 3tract until ! 3di;n is met or waiv$ & t cd c.el ! 3tract 8;ab 9itio0 if x is n met or waiv$4 ,two examples ( 3di;ns prec$5t >e 7a7 a 3di;n 9 a 3tract =! sale (a hotel busi;s t provides t ! transf] ( [n]%ip is n 6take place until ! pur*as] obta9s a liquor lic;e1 & 7b7 a 3di;n 9 a 3tract =! sale ( l& t susp5ds -ple;n until ! pur*as]'s solicitor has approv$ ! v5dor's title 6! prop]ty4 #g4 ,=mal agree;ts ( pur*ase & sale >e frequ5tly explicit z 6! date ( ex*ange &1 un.s circum/.es 9dicate t a specifi$ date 0 *ang$ or 0 n ! true 9t5t ( bo? "pies1 ! date s specifi$ is presum$ 6be ! date ( 5title;t4 #g  ,,it-#agj;,r c#b ,": ! date ( ex*ange is n expressly agre$ 2t ! "pies1 ! "t t ! attributes ( [n]%ip pass f ! v5dor 6! pur*as] is presum$ 6be ! date ( 5title;t4 ,s9ce ? te/ is ! same te/ t is appli$ 6det]m9e ! date ( acquisi;n ( deprecia# prop]ty 0a pur*as]1 ! -;ts 3ta9$ 9 ,,it-#ej;,r >e equ,y valid 9 det]m9+ a v5dor's date ( 4posi;n 9 ^! cases4 #h4 ,s9ce posses.n1 use & risk >e ! prim>y attributes ( b5eficial [n]%ip1 regi/r,n ( legal title al"o is ( ll signific.e 9 det]m9+ ! date ( 4posi;n4 ,factors t >e /r;g 9dicators (! pass+ ( [n]%ip 9clude3 7a7 physical or 3/ructive posses.n 7ref] to ,,it-#ej;,r71 7b7 5title;t 69come f ! prop]ty1 7c7 assump;n ( responsibil;y = 9sur.e cov]age1 & 7d7 -m;e;t ( liabil;y = 9t]e/ on pur*as]'s debt t =ms a "p (! sale price4 #h  ,r1l ,prop]ty ,sales d#b 7p>agraphs #i-aj7 #i4 ,9 ! case ( sales ( r1l prop]ty 7z well z sales ( o!r prop]ty ": ! 3tract cd 2 specific,y 5=c$ 0! c\rts71 a pur*as] acquires an equita# 9t]e/ 9 ! prop]ty ^u execu;n (a b9d+ agree;t = sale or an a3ept$ (f] 6pur*ase4 ,al? x may 2 correct 6say t ! prop]ty has be5 8sold0 at t "t1 "! is n necess>ily a 4posi;n at t "t =! purposes ( p>agraphs #ac7#ba77c7 & #ed7c7 2c (! re/rict$ m1n+ giv5 9 respect (a 4posi;n t 9volves a sale 7see p>agraph #b abv74 ,x is equ,y cle> t a v5dor w n necess>ily h an 8am.t receiva#0 "u p>agraph #ab7#a77b7 at t "t4 ,"! w 2 no e6ect = 9come tax purposes un.s & until ! v5dor 2comes 5titl$ 6! sale price4 #aj4 ,_m agree;ts 9volv+ ! sale ( r1l prop]ty propose a 8clos+ date0 =! -ple;n (! sale4 ,? is norm,y ! date t b5eficial [n]%ip is 9t5d$ 6pass f #i  ,,it-#agj;,r e#b ! v5dor 6! pur*as] &! "t ! v5dor is 5titl$ 6! sale price b ! facts (a "picul> situ,n m/ support t ! express$ 9t5t 0 9 fact c>ri$ \4 ,9 cases ": ! 8clos+ date0 is 6o3ur 8on or 2f0 a specifi$ date1 ! actual date ( clos+ m/ 2 det]m9$ 0! "picul> facts s* z 7a7 ! date funds requir$ 6be pd on clos+ 7 actu,y pd1 7b7 ! date t ! title 0 3vey$1 7c7 ! date ( adju/;ts ( 9sur.e premiums1 r5tals1 mortgage 9t]e/1 r1lty taxes etc41 & 7d7 ! date ( posses.n 0! pur*as]4 ,sale ( ,%>es 7p>agraphs #aa-ah7 #aa4 ,! date ( 4posi;n ( %>es sold 9 /ock ex*ange transac;ns is 4cuss$ 9 ,,it-#acc4 #ab4 ,a %>ehold] :o deposits a %>e )a depository pursuant 6a 8take-ov]-bid0 7z def9$ & regulat$ 0prov9cial #aj  ,,it-#agj;,r f#b or f$]al /atutes7 is 5titl$ 6! sale price on ! e>li] ( 7a7 ! date t ! (f]or takes up ! %>e1 & --------------------------------------#c 7b7 ! date ^u : all 3di;ns (! (f] h be5 satisfi$ or waiv$4 #ac4 ,%>es >e 3sid]$ 6be 8tak5 up0 at ! "t ( pay;t if ? o3urs 2f ! p]iod ( a3ept.e expires & "! is no 9dic,n t ! (f]or acquir$ ! usual [n]%ip "rs 2f t "t4 ,al? an (f]or usu,y res]ves a %ort p]iod ( "t af ! expiry date (! (f] 6e6ect pay;t = %>es tak5 up1 a %>ehold] is n"e!.s 5titl$ 6pay;t at ! "t t ! (f]or's oblig,n 6pay is uncondi;nal4 #ad4 ,mo/ take-ov] bids provide ! (f]or )! "r 6)draw 8 (f] at any "t up 6a specifi$ date foll[+ ! p]iod ( a3ept.e if ! directors (! corpor,n 7! subject (! take-ov] bid7 take any ac;n t mat]i,y *anges ! "utak+1 assets or capital (! corpor,n4 ,z l;g z s* a "r rema9s 9 e6ect & is n waiv$1 a #aa  ,,it-#agj;,r a#c %>ehold] is n 5titl$ 6! sale price4 ,ano!r 3di;n frequ5tly f.d 9 take-ov] bids is ! "r (! (f]or 6)draw ! (f] if less ?an a specifi$ p]c5tage (! \t/&+ %>es is on deposit at ! 5d (! p]iod ( a3ept.e4 ,al? x may 2 >gu$ t 7in ! abs;e ( o!r unsatisfi$ 3di;ns7 a %>ehold] is 5titl$ 6! sale price :5 ! specifi$ p]c5tage ( %>es has be5 a*iev$1 x is ! ,de"p;t's view t 5title;t norm,y o3urs only af ! expiry (! p]iod ( a3ept.e 7un.s pay;t is made 2f t "t74 #ae4 ,a tru/ee or escr[ ag5t is frequ5tly appo9t$ 6reta9 physical posses.n ( %>es =! p]iod ( "t dur+ : _! sell+ price is n fully pd4 ,an agree;t sett+ \ ! duties ( s* a tru/ee or ag5t usu,y 3ta9s provi.ns t e6ectively modify ! [n]%ip "rs (! v5dor & pur*as] dur+ ! transi;nal p]iod4 ,9 s* cases1 ! "t t b5eficial [n]%ip passes f ! v5dor 6! pur*as] c 2 di6icult 6asc]ta94 ,al? ea* case #ab  ,,it-#agj;,r b#c c only 2 judg$ 9 ! lie [n]%ip >e \tl9$ 9 p>agraphs #af 6#ah 2l4 #af4 ,susp5.n (a pur*as]'s "r 6transf] %>es 6a ?ird "py 2f ! v5dor has be5 fully pd is n reg>d$ z a significant factor 9 det]m9+ b5eficial [n]%ip4 #ag4 ,a pur*as]'s "r 6divid5ds1 vot+ "rs & "r 6a return ( capital 9 ! ev5t (! corpor,n's 4solu;n >e 3sid]$ 6be important factors 9 det]m9+ b5eficial [n]%ip4 ,! pot5tial rev].n ( ^! "rs 6a v5dor 9 ! ev5t (a specifi$ default situ,n is n reg>d$ z an 9dic,n t b5eficial [n]%ip has n pass$4 ,regi/r,n on ! records (! corpor,n is ( no signific.e ": ! agree;t 2t ! v5dor1 pur*as] & tru/ee or ag5t validly assigns a "picul> "r 6a p]son :o is n ! regi/]$ [n]4 ,= example1 a v5dor may actu,y rcv a divid5d #ac  ,,it-#agj;,r c#c 2c he is ! regi/]$ %>ehold] ( %>es sold : h be5 5dors$ 9 blank & deposit$ )a tru/ee "u an agree;t t -pells hm 6remit ! divid5d 6! pur*as]4 #ah4 ,": a sale ( %>es 9volves a *ange 9 e6ective 3trol (! subject corpor,n1 re/ric;ns on divid5ds & vot+ "rs >e frequ5tly impos$ ^u ! pur*as] :ile any por;n (! sale price rema9s unpd4 ,z l;g z s* re/ric;ns c r1sonably 2 reg>d$ z 2+ =! protec;n (! v5dor's "r 6collect ! sale price1 !y >e n 3sid]$ significant 9 det]m9+ b5eficial [n]%ip4 ,reacquisi;n ( ,prop]ty ,sold 7p>agraph #ai7 #ai4 ,_m agree;ts -template ! reacquisi;n 0! v5dor ( prop]ty t has be5 sold ^u ! happ5+ (a specifi$ ev5t1 ! failure (a specifi$ ev5t 6o3ur or a specifi$ default (! pur*as]4 ,": a reacquisi;n ( b5eficial [n]%ip #ad  ,,it-#agj;,r d#c o3urs 0r1son (! pur*as]'s failure 6pay all or any "p ( an am.t [+1 sec;n #gi provides rules 6det]m9e ! tax 3sequ;es = bo? v5dor & pur*as]4 ,al? ! ,act provides no specific rules ": reacquisi;n o3urs 9 situ,ns 6: sec;n #gi does n apply1 x is cle> t s* an o3urr;e does n retroactively nullify ! e6ects (! orig9al 4posi;n = 9come tax purposes ev5 if ! agree;t re/ores ! v5dor & pur*as] 6_! relative posi;ns 2f ! sale took place4 #ae