Law:Northern Transportation Company Limited Disposal Authorization Act

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S.c. 1985, c. 35

Assented to 1985-06-28

An Act to authorize the disposal of the Northern Transportation Company Limited and the forgiveness of its debt to Her Majesty and to amend other Acts in consequence thereof

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:


Contents

Short Title

Short title

1. This Act may be cited as the Northern Transportation Company Limited Disposal Authorization Act.


Interpretation

Definitions

2. In this Act,

“Corporation”

« Société »

“Corporation” means the Northern Transportation Company Limited, a corporation continued under the Canada Business Corporations Act;

“Minister”

« ministre »

“Minister” means the Minister of Transport.


Authorization Of Disposal

Sale of shares

3. (1) The Minister is hereby authorized to sell, on such terms and conditions as are approved by the Governor in Council, any or all of the shares of the Corporation held by the Minister in trust for Her Majesty.

Transfer

(2) For the purposes of effecting a sale authorized by subsection (1), all property, whether real or personal, rights and interests of Her Majesty used in the business of the Corporation immediately prior to the coming into force of this subsection are transferred from Her Majesty to the Corporation.

Exemptions

(3) The Governor in Council may, by order, exempt any property, rights or interests of Her Majesty from the application of subsection (2) and transfer the control, management and administration thereof from the Corporation to any Minister or department of the Government of Canada or to any other person or body.

Cost of transfer

(4) For the purposes of the Income Tax Act, the Income Tax Application Rules, 1971 and the Income Tax Regulations,

(a) the property transferred to the Corporation by subsection (2) is deemed to have been owned by the Corporation throughout the period during which the property was property of Her Majesty administered by the Corporation;

(b) the cost amount to the Corporation of that property, other than any such property that is depreciable property, immediately after the transfer thereof to the Corporation is deemed to be the cost amount thereof to Her Majesty immediately prior to the transfer; and

(c) the adjusted cost base and cost amount to the Corporation of any such property that is depreciable property, immediately after the transfer thereof to the Corporation, are deemed to be the amounts that may reasonably be regarded as the adjusted cost base and cost amount to Her Majesty in respect of the property immediately prior to that transfer.

Sale or other disposal of assets

4. (1) The Minister may, at any time prior to a sale of shares authorized by section 3, direct the Corporation to sell or otherwise dispose of any or all of the assets of the Corporation, including shares of any other corporation held by the Corporation, on such terms and conditions as are approved by the Governor in Council.

Compliance with direction

(2) On receiving a direction under subsection (1), the Corporation is hereby authorized to sell or dispose of the assets of the Corporation in accordance with the direction and shall comply with the direction.

Provisions not applicable

(3) Subsections 183(2) to (8) of the Canada Business Corporations Act and subsections 108(2) to (5) of the Financial Administration Act do not apply in respect of any sale or other disposal of assets of the Corporation authorized by subsection (2).


Forgiveness Of Debt

Forgiveness of debt

5. (1) The Minister is hereby authorized to forgive and write off, in whole or in part, any debt or obligation of the Corporation due to Her Majesty or any claim by Her Majesty against the Corporation.

Regulations not applicable

(2) The regulations made pursuant to subsection 18(1) of the Financial Administration Act do not apply in respect of any writing off of a debt, obligation or claim authorized by subsection (1).

Repayment of debt

(3) For the purposes of the Income Tax Act, the amount of any debt, obligation or claim, other than interest owing, forgiven and written off pursuant to this section is deemed to have been repaid in full by the Corporation immediately before it was so forgiven and written off.

Report in Public Accounts

(4) Any debt, obligation or claim forgiven and written off pursuant to this section in a fiscal year shall be reported, in such form as the Treasury Board may determine, in the Public Accounts for that year.


Adjustment Of Accounts

Adjustment to accounts of Canada

6. The Minister, after consultation with the President of the Treasury Board, shall cause such adjustments to be made in the accounts of Canada as are required as a result of a sale of shares, or a sale or other disposal of assets, of the Corporation authorized by this Act.


Consequential

Agency status revoked

7. The Government Companies Operation Act ceases to apply to the Corporation and the Corporation ceases to be an agent of Her Majesty.

Prescribed federal Crown corporation status revoked

8. (1) Section 27 and subsection 124(3) of the Income Tax Act cease to apply to the Corporation and the Corporation ceases to be a prescribed federal Crown corporation for the purposes of those provisions.

Transitional

(2) For the purposes of applying section 124 of the Income Tax Act to the Corporation with respect to the taxation year of the Corporation during which this section comes into force, the Corporation’s taxable income earned in the year in a province is that proportion of the amount thereof otherwise determined in accordance with that section that the number of days in that year on or after the day on which this section comes into force is of the number of days in the whole of that year.

9. (Repealed, 1988, c. 38, s. 101)

10. (Amendments to other Acts)


Commencement

Commencement

Schedule

(Amendments to other Acts)


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