Harbourfront Remission Order

Link to law: http://laws-lois.justice.gc.ca/eng/regulations/SI-95-62/FullText.html

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Harbourfront Remission Order

SI/95-62FINANCIAL ADMINISTRATION ACT
Registration 1995-05-31
Order Remitting Income Taxes and Penalties, and the Interest Thereon, Resulting from Exchanges of Properties with Queens Quay West Land Corporation (Formerly Harbourfront Corporation) and Others
P.C. 1995-741  1995-05-09His Excellency the Governor General in Council, considering that it is in the public interest to do so, is pleased hereby, on the recommendation of the Minister of Finance, pursuant to subsection 23(2)Footnote * of the Financial Administration Act, to make the annexed Order remitting income taxes and penalties, and the interest thereon, resulting from exchanges of properties with Queens Quay West Land Corporation (formerly Harbourfront Corporation) and others.
Return to footnote *S.C. 1991, c. 24, s. 7(2)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


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,


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


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.

SCHEDULE(Sections 2 to 4)

Column I
Column II
Column III
Column IV

Item
Exchange
Transferor
Property disposed
Property acquired

1
First
HMS Partnership
BQ-5
BQ-6

2
Second
Huang & Danczkay Properties
the portion of the property municipally known as 2-50 Stadium Road, Toronto, which is described as Parts 1, 3, 4 and 5 on Plan 64R-13822, City of Toronto, being approximately 0.68 hectares
BQ-8

3
Third
Huang & Danczkay Properties
MLQ-6
YQ-8, JQ-3 and MLQ-3

4
Fourth
Rose Park Wellesley Investments Limited
SQ-4, part of SQ-1 and part of the proposed Realignment of Queens Quay West (being Parts 9 and 10, and part of Part 11, on Plan 64R-14173)
part of SQ-2, being Parts 19 and 3 and part of Part 2 on Plan 64R-14173, and the fee simple reversion in SQ-3 and SQ-5

5
Fifth
Rose Park Howard Investments Limited
SQ-4, part of SQ-1 and part of the proposed Realignment of Queens Quay West (being Parts 9 and 10, and part of Part 11, on Plan 64R-14173)
part of SQ-2, being Parts 19 and 3 and part of Part 2 on Plan 64R-14173, and the fee simple reversion in SQ-3 and SQ-5