Section 20(24) Election Clause Samples
A Section 20(24) Election clause allows a taxpayer to make a specific election under subsection 20(24) of the Income Tax Act, typically to address the treatment of certain amounts for tax purposes. In practice, this clause enables the taxpayer to designate how particular payments or amounts, such as interest or other expenses, are to be treated when calculating taxable income. By providing this option, the clause offers flexibility in tax planning and ensures that the taxpayer can optimize their tax position in accordance with the law, thereby preventing unintended tax consequences.
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Section 20(24) Election. If Seller is transferring a portion of the Purchased Assets to Buyers in consideration for Buyers assuming prepaid obligations of Seller to deliver goods or provide services in the future, and if requested by Buyer or Seller, Seller and Buyers shall execute and file, on a timely basis and using any prescribed form, a joint elections under section 20(24) of the Tax Act and under any similar provision of any applicable provincial legislation as to such assumption. Seller and Buyers shall prepare and file their respective Tax Returns in a manner consistent with such joint elections.
Section 20(24) Election. The Purchaser, on the one hand, and each of the Canadian Sellers, on the other hand, shall, if applicable, jointly execute and file an election under subsection 20(24) of the Tax Act, in the manner required by subsection 20(25) of the Tax Act, and the equivalent provisions of any applicable provincial Laws, with respect to the amount paid by the applicable Canadian Seller to the Purchaser for assuming future obligations. Each Canadian Seller and the Purchaser acknowledge that a portion of the Purchased Assets transferred by the applicable Canadian Seller to the Purchaser pursuant hereto with a value equal to the amount elected under subsection 20(24) of the Tax Act is being transferred by the Canadian Sellers to the Purchaser as a payment for the assumption by the Purchaser of such future obligations.