D-13.2 - Succession Duty Act

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15. Every property situated outside Québec and transmitted owing to or upon the death of a person resident or domiciled in Québec to a corporation not resident in Québec is deemed transmitted owing to the death of that person to any shareholder of the corporation who is resident in Québec, in proportion to his direct equity in the corporation represented by the ratio between the market value of the shares directly or indirectly held by him in the capital stock of the corporation and the market value of all the issued shares of the capital stock of the corporation; any such property so transmitted to a corporation not resident in Québec is deemed, as the case may be, transmitted to any such shareholder of a corporation that directly or indirectly controls the corporation to which the property is so transmitted, in proportion to his indirect equity in the corporation, represented by the percentage then obtained when that shareholder’s equity percentage in any corporation is multiplied by that corporation’s direct equity percentage in the corporation to which the property is transmitted.
The same rule applies to a debt situated outside Québec receivable by such person from a corporation not resident in Québec at the time the cancellation of such debt occurs owing to or upon the death of such person.
1978, c. 37, s. 15; 1980, c. 7, s. 3; 1981, c. 24, s. 1.
15. Every property situated outside Québec and transmitted owing to or upon the death of a person resident or domiciled in Québec to a corporation not resident in Québec is deemed transmitted owing to the death of that person to any shareholder of the corporation who is resident in Québec, in proportion to his direct equity in the corporation represented by the ratio between the market value of the shares directly or indirectly held by him in the capital stock of the corporation and the market value of all the issued shares of the capital stock of the corporation; any such property so transmitted to a corporation not resident in Québec is deemed, as the case may be, transmitted to any such shareholder of a corporation that directly or indirectly controls the corporation to which the property is so transmitted, in proportion to his indirect equity in the corporation, represented by the percentage then obtained when that shareholder’s direct equity percentage in any corporation is multiplied by that corporation’s direct equity percentage in the corporation to which the property is transmitted.
The same rule applies to a debt situated outside Québec receivable by such person from a corporation not resident in Québec at the time the cancellation of such debt occurs owing to or upon the death of such person.
1978, c. 37, s. 15; 1980, c. 7, s. 3.
15. Every property situated outside Québec and transmitted owing to or upon the death of a person resident or domiciled in Québec to a corporation not resident in Québec is deemed so transmitted to any shareholder of the corporation who is resident in Québec, in proportion to his direct equity in the corporation represented by the ratio between the number of shares directly or indirectly held by him in the capital stock of the corporation and the total number of issued shares of the capital stock of the corporation; any such property so transmitted to a corporation residing outside Québec is deemed, as the case may be, transmitted to any such shareholder of a corporation that directly or indirectly controls the corporation to which the property is so transmitted, in proportion to his indirect equity in the corporation, represented by the percentage then obtained when that shareholder’s direct equity percentage in any corporation is multiplied by that corporation’s direct equity percentage in the corporation to which the property is transmitted.
Any property situated outside Québec and transmitted owing to the death of a person resident or domiciled in Québec to a trust not resident in Québec is deemed so transmitted to any person resident in Québec in the proportion that such person’s equity in the trust, at the time of death, represents in relation to all other persons’ equity in the said trust at the same time.
The same rule applies to a debt receivable by such person from a corporation or a trust situated outside Québec at the time of his death where the cancellation of such debt occurs owing to or upon the death of such person.
1978, c. 37, s. 15.