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We believe that the argument that the retroactivity of the condition precedent in civil law applies only in law and not de facto does not preclude retroactivity from being applicable in tax matters.  We concluded that the order is a legal concept and that in the event of a sale, the transfer of ownership is contemplated. We cannot consider that the concept of disposition applies only to real, indisputable and indispensable facts, immune to retroactivity, such as the collection of fruit, the enjoyment of property or administrative acts. On the contrary, retroactivity should also apply to the concept of disposition, since the right to property is retroactive, since these two concepts are linked. The trial judge concluded that compliance with the condition had retroactive effect. This conclusion is contained in the following explanatory statement: if you opt for this route, do not forget to indicate a language that excludes all obligations that could not be fulfilled retroactively, otherwise you risk infringing when signing, as we have already said. As indicated above, after a sale subject to a condition precedent, the capital gain should only be recognised when the condition is met, but with retroactive effect to the date of signature of the contract. The taxable person should declare the capital gain by filing an amended declaration for the tax year in which the contract was signed, provided that it was signed in a previous year. The same logic applies to business income or the reconquest of CCA. As indicated in paragraphs 5 and 6 of Interpretation Bulletin IT-170R, if the transfer of ownership is subject to a genuine condition precedent [condition suspensive” in the French version], the decision will not be taken until the condition precedent [condition suspensive” in the French version] is met. As a result, the transfer of the activity for the purposes of the Act will only take place once Investment Canada`s authorization has been obtained. Any agreement concluded between the taxable person and the seller which purports to give retroactive effect to the transfer shall have no tax effect. All revenue from the operation of the business prior to the transfer is income of the seller. (highlighted only here.) 19. Many agreements provide for the reincarnation of property by the seller, which has been sold as a result of a particular event, the non-inségnisation of a particular event or a certain delay on the part of the buyer. Where a buy-back of economic property is made because the buyer has not paid all or part of an amount due, section 79 contains rules for determining the tax consequences for sellers and buyers. Although the law does not provide specific rules for redemption in situations to which Section 79 is not applicable, it is clear that such an event will not retroactively nullify the effects of the original order for income tax purposes, even if the agreement returns the seller and the buyer to their relative positions prior to the sale. (Highlighted only here.) In the case of contracts that transfer ownership, the buyer is considered never to be the owner. Thus, in theory, any right it has granted to third parties fails retroactively.  Before designing or signing a retroactive agreement, do some research, choose your words wisely, and exercise caution. Well done, they can be very useful. Poorly executed, and you could find yourself in a world of wounds. Thus, the Federal Court of Appeal found that both civil and customary obligations are retroactive. . .