Change in the applicable partial exemption rate

(1) Where the applicable partial exemption rate changes, or the conditions for the partial exemption cease to exist, the investment unit is deemed disposed of and acquired on the following day. The investment unit is deemed disposed of at the end of the assessment period where the investor provides the proof under section 20(4), first sentence in that assessment period and no proof, or a proof for a different partial exemption rate, is provided for the following assessment period.
(2) As disposal proceeds and acquisition cost, 1. in the cases of subsection (1), first sentence, the redemption price of the day on which the change occurred or the conditions ceased to exist is to be applied, or 2. in the cases of subsection (1), second sentence, the last redemption price fixed in the assessment period in which the existence of the conditions for a partial exemption, or for a different partial exemption rate, was proven is to be applied. Where no redemption price is fixed, the exchange or market price takes the place of the redemption price. Where the applicable partial exemption rate changes as a result of the contribution of an investment unit to business assets, the value to be applied under the first and second sentences is to be applied as the contribution value within the meaning of section 6(1) no. 5, first sentence, second half-sentence, letter (c) of the Income Tax Act. The value to be applied under the first to third sentences is deemed acquisition cost within the meaning of section 6(1) no. 2, first sentence of the Income Tax Act. Insofar as the value to be applied under the first to third sentences is higher than the value before the notional disposal, diminutions in value within the meaning of section 6(1) no. 2, second sentence of the Income Tax Act are to be taken into account only at the time of the actual disposal of the investment unit. Recoveries of value within the meaning of section 6(1) no. 2, third sentence in conjunction with no. 1, fourth sentence of the Income Tax Act are to be taken into account only at the time of the actual disposal, insofar as the fifth sentence was applied to the previous diminutions in value and insofar as the value before the notional disposal is exceeded.
(3) The profit from the notional disposal under subsection (1) is deemed to accrue at the time the investment unit is actually disposed of or is deemed disposed of under section 19(2) or (3). The profit from the notional disposal under subsection (1) is subject to the separate tax rate for income from capital assets under section 32d of the Income Tax Act where, at the time of the notional disposal, the conditions for taxation under section 20(1) no. 3 of the Income Tax Act were satisfied and no differing allocation to other types of income under section 20(8), first sentence of the Income Tax Act was to be made.