299.1. Where a taxpayer is deemed, by reason of subparagraph c of the second paragraph of section 299, to have disposed of a share of the capital stock of a corporation at the end of a taxation year and the taxpayer or a person with whom he is not dealing at arm’s length owns the share at the earliest time, during the 24-month period immediately following the disposition, that the corporation or a corporation controlled by it carries on business, the taxpayer or the person, as the case may be, is deemed to have disposed of the share at that earliest time for proceeds of disposition equal to its adjusted cost base to the taxpayer, determined immediately before the time he is deemed to have disposed of it by reason of subparagraph c of the second paragraph of section 299, and to have reacquired it immediately after that earliest time at a cost equal to those proceeds.
1993, c. 16, s. 122; 1997, c. 3, s. 71.