Principales Questions: In a situation where a corporation sold its depreciable properties and its eligible capital property before the end of the taxation year of the corporation and where a dividend was paid by the corporation after the sale of these assets (and before the end of the taxation year), whether the amounts computed pursuant to subsections 13(1) and 14(1) at the end of the taxation year would be added to the safe income before the safe income determination time with respect to the dividend.
Position Adoptée: We would accept to take the position that the safe income immediately before the safe income determination time would include the income computed pursuant to subsections 13(1) and 14(1) if the sale of the assets occurred before that safe income determination time (even if we can reach another conclusion when considering only the wording of the provisions). However, we would also take the position that the income taxes payable with respect to those types of income would have to reduce this safe income because they do not contribute to the capital gain on a share of the capital stock of the corporation.
Raisons: Textual, contextual and purposive approach. As the sale of assets occurred before the safe income determination time, we can conclude that the income is earned or realized at the time of the sale.
