3 (d) determine the amount, if any, by which the amount determined under

paragraph (c) exceeds the total of all amounts each of which is the taxpayer’s
loss for the year from an office, employment, business or property or the
taxpayer’s allowable business investment loss for the year,
39 (1) For the purposes of this Act,
(a) a taxpayer’s capital gain for a taxation year from the disposition of any
property is . . .
(b) a taxpayer’s capital loss for a taxation year from the disposition of any
property is . . .
(c) a taxpayer’s business investment loss for a taxation year from the
disposition of any property is . . . the taxpayer’s capital loss for the year from
a disposition . . .
of any property that is
(iii) a share of the capital stock of a small business corporation, or
(iv) a debt owing to the taxpayer by a Canadian-controlled private corporation
(other than, where the taxpayer is a corporation, a debt owing to it by a
corporation with which it does not deal at arm’s length) that is
(A) a small business corporation . . .
s.248
“small business corporation” at any particular time, means, subject to
subsection 110.6(15), a particular corporation that is a Canadian-controlled
private corporation all or substantially all of the fair market value of the
assets of which at that time is attributable to assets that are
(a) used principally in an active business carried on primarily in Canada by
the particular corporation or by a corporation related to it . . .

248 “superficial loss” of a taxpayer means the taxpayer’s loss from the
disposition of a particular property where

(a) during the period that begins 30 days before and ends 30 days after the
disposition, the taxpayer or a person affiliated with the taxpayer acquires a
property (in this definition referred to as the “substituted property”) that is,
or is identical to, the particular property, and

(b) at the end of that period, the taxpayer or a person affiliated with the
taxpayer owns or had a right to acquire the substituted property,


47. (1) Where at any particular time after 1971 a taxpayer who owns one
property that was or two or more identical properties each of which was, as
the case may be, acquired by the taxpayer after 1971, acquires one or more
other properties (in this subsection referred to as “newly-acquired
properties”) each of which is identical to each such previously-acquired
property, for the purposes of computing, at any subsequent time, the
adjusted cost base of the taxpayer of each such identical property,
o

o

(a) the taxpayer shall be deemed to have disposed of each such
previously-acquired property immediately before the particular time for
proceeds equal to its adjusted cost base to the taxpayer immediately
before the particular time;
(b) the taxpayer shall be deemed to have acquired the identical property
at the particular time at a cost equal to the quotient obtained when

(i) the total of the adjusted cost bases to the taxpayer
immediately before the particular time of the previously-acquired
properties, and the cost to the taxpayer (determined without
reference to this section) of the newly-acquired properties

is divided by

(ii) the number of the identical properties owned by the
taxpayer immediately after the particular time;