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CB 31: Disposal of business: transferred employment income obligations
or “Income from transferred employee costs when buying a business”
You could also call this:

“Tax rules for stolen property”

If you take something that doesn’t belong to you without having the right to do so, you might have to pay tax on it. The amount of tax is based on how much the item is worth in the market.

You have to pay this tax in the same year that you take the item. This rule applies even if you’re holding the item for someone else, like a trustee would.

Remember, taking things that don’t belong to you is not okay. This law is just explaining what happens with taxes if someone does take something without permission.

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Next up: CB 32B: Owners of look-through companies

or “Tax responsibilities for people who own part of a look-through company”
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Part C Income
Income from business or trade-like activities: Exclusion for investment land

CB 32Property obtained by theft

  1. If a person obtains possession or control of property without claim of right, an amount equal to the market value of the property is income of the person.

  2. The income is allocated to the income year in which the person obtains possession or control of the property.

  3. Subsection (1) applies whether or not the person holds the property as a trustee under a constructive trust.

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