Income Tax Act

Marginal note:Ecological gift — tax payable

• 207.31 (1) A charity, municipality in Canada or municipal or public body performing a function of government in Canada (each of which is referred to in this section as the “recipient”) shall, in respect of a property, pay a tax under this Part in respect of a taxation year if

  • (a) at any time in the year, the recipient

    • (i) disposes of the property, or

    • (ii) in the opinion of the Minister of the Environment, or a person designated by that Minister, changes the use of the property;

  • (b) the property is described in paragraph 110.1(1)(d) or in the definition total ecological gifts in subsection 118.1(1); and

  • (c) the disposition or change is made without the authorization of the Minister of the Environment or a person designated by that Minister.

• Marginal note:Ecological gift — amount of tax

  (2) The amount of tax to be paid under subsection (1) is equal to 50% of the amount that would be determined for the purposes of section 110.1 or 118.1, if this Act were read without reference to subsections 110.1(3) and 118.1(6), to be the fair market value of the property referred to in subsection (1) if the property were given to the recipient immediately before the disposition or change referred to in paragraph (1)(a).