Subsection 20(24) Election Clause Samples
The Subsection 20(24) Election is a tax provision that allows a taxpayer to make a specific election regarding the treatment of certain amounts for tax purposes. In practice, this election typically applies to situations involving the deduction of amounts paid or payable, such as interest or other expenses, under particular circumstances outlined in the Income Tax Act. By making this election, taxpayers can ensure that their tax filings reflect the intended treatment of these amounts, thereby providing clarity and potentially optimizing their tax position. The core function of this clause is to give taxpayers flexibility and certainty in how specific deductions are handled for tax reporting purposes.
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Subsection 20(24) Election. Purchaser shall, and Seller shall cause Canadian Seller to, if applicable, jointly execute and file an election under subsection 20(24) of the Income Tax Act (Canada) in the manner required by subsection 20(25) of the Income Tax Act (Canada) and under the equivalent or corresponding provisions of any other applicable provincial or territorial Law, in the prescribed forms and within the time period permitted under the Income Tax Act (Canada) and under any other applicable provincial or territorial Law, as to such amount paid by Canadian Seller to Purchaser for assuming future obligations. In this regard, Purchaser and Canadian Seller acknowledge that a portion of the Canadian Transferred Assets transferred by Canadian Seller pursuant to this Agreement and having a value equal to the amount elected under subsection 20(24) of the Income Tax Act (Canada) and the equivalent provisions of any applicable provincial or territorial Law, is being transferred by Canadian Seller as a payment for the assumption of such future obligations by Purchaser.
Subsection 20(24) Election. The Seller and the Purchaser will on the Closing Date jointly execute an election under subsection 20(24) of the Tax Act and the provisions of any applicable equivalent provincial Laws in respect of the assumption by the Purchaser of those Assumed Liabilities relating to deferred revenue received by the Seller prior to the Closing Date and will each file such election with the applicable Governmental Authority forthwith after the Closing Date. For greater certainty, the parties confirm that the amount of the Purchase Price as set out in Section 2.04(a) has taken into account the consideration paid by the Seller for the Purchaser’s assumption of the Seller’s obligations relating to such deferred revenue.
Subsection 20(24) Election. Seller and Buyer shall jointly execute and file an election under subsections 20(24) and 20(25) of the ITA and under the equivalent provisions of any other applicable provincial Tax legislation, in the prescribed form and within the prescribed time permitted under the ITA and under any other Applicable Law, as to such amount paid by Seller to Buyer for undertaking future obligations. In this regard, Seller and Buyer acknowledge that part of the Purchased Assets were transferred to Buyer as a payment by Seller to Buyer for the undertaking by Buyer of such future obligations of Seller.
Subsection 20(24) Election. Buyer and Sellers acknowledge that Buyer has agreed to assume the Assumed Liabilities. To the extent that any Seller has received amounts in respect of services not rendered or goods not delivered, in each case prior to the Closing, the Purchased Assets having a fair market value equal to those amounts are transferred to Buyer as payment for Buyer’s agreement to assume a corresponding amount of the Assumed Liabilities relating to those services or goods and, if requested by Buyer, Buyer and Sellers shall jointly elect pursuant to subsection 20(24) of the Income Tax Act (Canada) and under any similar provision of any applicable provincial legislation. The Parties shall file such election forms, along with any documentation necessary or desirable to give effect to such election, with CRA and any other appropriate taxation authority within the prescribed time periods.
Subsection 20(24) Election. In accordance with the requirements of the Income Tax Act (Canada) and any applicable equivalent or corresponding provincial or territorial tax legislation, Purchaser and Vendors shall, at the request of the Vendors, make and file, in a timely manner, joint elections to have the rules in subsection 20(24) of the Income Tax Act (Canada), and any equivalent or corresponding provision under applicable provincial or territorial tax legislation, apply to the obligations of the Vendor in respect of undertakings which arise from the Operations and to which paragraph 12(1)(a) of the Income Tax Act (Canada) applies. The Purchaser and Vendors acknowledge that Vendors are transferring certain Purchased Assets to Purchaser which have a value equal to the elected amount as consideration for the assumption by Purchaser of such obligations of Vendors.