Section 119 — Income Tax Act: Former resident — credit for tax paid

If at any particular time an individual was deemed by subsection 128.1(4) to have disposed of a capital property that was a taxable Canadian property of the individual throughout the period that began at the particular time and that ends at the first time, after the particular time, at which the individual disposes of the property, there may be deducted in computing the individual’s tax payable under this Part for the taxation year that includes the particular time the lesser of that proportion of the individual’s tax for the year otherwise payable under this Part (within the meaning assigned by paragraph (a) of the definition tax for the year otherwise payable under this Part in subsection 126(7)) that the individual’s taxable capital gain from the disposition of the property at the particular time is of the amount determined under paragraph 114(a) in respect of the individual for the year, and that proportion of the individual’s tax payable under Part XIII in respect of dividends received during the period by the individual in respect of the property and amounts deemed under Part XIII to have been paid during the period to the individual as dividends from corporations resident in Canada, to the extent that the amounts can reasonably be considered to relate to the property, that the amount by which the individual’s loss from the disposition of the property at the end of the period is reduced by subsection 40(3.7) is of the total amount of those dividends.