Harbourfront Remission Order (SI/95-62)

Short Title

1 This Order may be cited as the Harbourfront Remission Order.

Interpretation

• 2 (1) In this Order,

  Act

  Act means the Income Tax Act; (Loi)

  exchange

  exchange means a transaction or series of transactions (identified in column I of an item of the schedule as being the first, second, third, fourth or fifth exchange) in the course of which the transferor partnership or transferor corporation named in column II of that item disposes of its interest in a property referred to in column III of that item and acquires an interest in a property referred to in column IV of that item, whether or not the disposition is to the person from whom the acquisition is made; (échange)

  transferor corporation

  transferor corporation means

  • (a) Rose Park Wellesley Investments Limited, which is a corporation incorporated under the laws of the Province of Ontario, or

  • (b) Rose Park Howard Investments Limited, which is a corporation incorporated under the laws of the Province of Ontario, (société cédante)

  transferor partnership

  transferor partnership means

  • (a) the HMS Partnership, which is the partnership between 1006038 Ontario Inc. and 919889 Ontario Limited, formed under the laws of the Province of Ontario, or

  • (b) Huang & Danczkay Properties, which is the partnership between Huang & Danczkay Limited and Huang & Danczkay Developments Inc., formed under the laws of the Province of Ontario. (société de personnes cédante)

• (2) The properties referred to in the schedule as BQ-5, BQ-6, BQ-8, JQ-3, MLQ-3, MLQ-6, SQ-1, SQ-2, SQ-3, SQ-4, SQ-5, YQ-8 and the proposed Realignment of Queens Quay West are the properties shown with those designations in the Official Plan — City of Toronto, Amendment No. 516, Harbourfront Official Plan Part II, as prepared by the Department of Public Works and the Environment, Survey and Mapping Section, Toronto, and dated April 1992 (File: 2402.29, Drawn: PG Map Nos. 50G-311, 312 and 313).

Remission

• 3 (1) Subject to section 4, remission is granted

  • (a) to each taxpayer that is a member of a transferor partnership in the fiscal period of the transferor partnership in which an interest in a property described in column III of the schedule is disposed of by the transferor partnership in the course of an exchange, of the amount, if any, by which

    • (i) the total of the tax and penalties payable under the Act by the taxpayer for the taxation year of the taxpayer in which that fiscal period ends

    exceeds

    • (ii) the total of the tax and penalties that would have been payable under the Act by the taxpayer for the taxation year if the transferor partnership’s proceeds of disposition of the interest had been equal to the cost amount to the transferor partnership for the purposes of the Act of the interest immediately before the exchange; and

  • (b) to each transferor corporation of the amount, if any, by which

    • (i) the total of the tax and penalties payable under the Act by the transferor corporation for the taxation year in which an interest in the properties described in column III of the schedule is disposed of by it in the course of an exchange

    exceeds

    • (ii) the total of the tax and penalties that would have been payable under the Act by the transferor corporation for the taxation year if the transferor corporation’s proceeds of disposition of the interest had been equal to the cost amount to the transferor corporation for the purposes of the Act of the interest immediately before the exchange.

• (2) Remission is granted of any interest payable under the Act on the tax and penalties remitted under subsection (1).

Condition

4 The remission granted under section 3 in respect of an interest in property disposed of by a transferor partnership or transferor corporation in the course of an exchange is on condition that

• (a) the interest is included in the inventory of the transferor partnership or transferor corporation immediately before the exchange; and

• (b) the cost to the transferor partnership or transferor corporation, immediately after the exchange, of each interest (in this paragraph referred to as the “particular acquired interest”) in a property referred to in column IV of the schedule acquired by the transferor partnership or the transferor corporation in the exchange is considered for the purposes of the Act

  • (i) in the case of the first or second exchange referred to in the schedule, to be the cost amount to the transferor partnership, immediately before the exchange, of its interest in the property disposed of in the course of the exchange, and

  • (ii) in the case of the third, fourth or fifth exchange referred to in the schedule, to be the amount determined by the formula

    A × B/C

    where

    A

    is the cost amount to the transferor partnership or transferor corporation, immediately before the exchange, of its interest or interests in the property or properties disposed of in the course of the exchange,

    B

    is the fair market value, immediately before the exchange, of the particular acquired interest, and

    C

    is the fair market value, immediately before the exchange, of all of the interests in property referred to in column IV of the schedule acquired in the course of the exchange by the transferor partnership or transferor corporation.