I-3, r. 1 - Regulation respecting the Taxation Act

Section 21.6r1 Disposition versions

2012-09-01

21.6R1. For the purposes of paragraph e of section 21.6 of the Act,

(a)  a share last acquired before 29 June 1982 and of a class of the capital stock of a corporation that is listed on a designated stock exchange in Canada is a prescribed share where less than 10% of the issued and outstanding shares of that class are owned by the owner of that share or by the owner of that share and persons related to that owner;

(b)  a share acquired after 28 June 1982 and of a class of the capital stock of a corporation that is listed on a designated stock exchange in Canada is a prescribed share at any particular time in respect of another corporation that receives a dividend at the particular time in respect of the share unless

i.  where the other corporation is a restricted financial institution,

(1)  the share is not a taxable preferred share,

(2)  dividends, other than dividends received on shares prescribed under section 21.6R3, are received at the particular time by the other corporation or by the other corporation and restricted financial institutions with which the other corporation does not deal at arm’s length, in respect of more than 5% of the issued and outstanding shares of that class, and

(3)  a dividend is received at the particular time by the other corporation or a restricted financial institution with which the other corporation does not deal at arm’s length, in respect of a share, other than a share prescribed under section 21.6R3, of that class acquired after 15 December 1987 and before the particular time,

ii.  where the other corporation is a restricted financial institution, the share

(1)  is not a taxable preferred share,

(2)  was acquired after 15 December 1987 and before the particular time, and

(3)  was, by reason of section 21.9 of the Act or paragraph a or b of section 21.9.1 of the Act, deemed to have been issued after 15 December 1987 and before the particular time, or

iii.  in any case, dividends, other than dividends received on shares prescribed under section 21.6R3, are received at the particular time by the other corporation or by the other corporation and persons with whom the other corporation does not deal at arm’s length, in respect of more than 10% of the issued and outstanding shares of that class;

(c)  a share of any of the following series of preferred shares of the capital stock of Massey-Ferguson Limited issued after 15 July 1981 and before 23 March 1982 is a prescribed share:

i.  $25 Cumulative Redeemable Retractable Convertible Preferred Shares, Series C,

ii.  $25 Cumulative Redeemable Retractable Preferred Shares, Series D, or

iii.  $25 Cumulative Redeemable Retractable Convertible Preferred Shares, Series E.

s. 21.6R2; O.C. 2456-80, s. 1; R.R.Q., 1981, c. I-3, r. 1, s. 21.6R2; O.C. 1472-87, s. 1; O.C. 1076-88, s. 1; O.C. 1114-92, s. 1; O.C. 1114-93, s. 2; O.C. 1707-97, s. 98; O.C. 1451-2000, s. 66; O.C. 1463-2001, s. 3; O.C. 134-2009, s. 1; O.C. 1176-2010, s. 2.