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

Section 359.1r1 Disposition versions

2016-02-17

359.1R1. In this chapter,

“excluded obligation”, in relation to a share or new right issued by a corporation, means

(a)  an obligation of the corporation with respect to

i.  eligibility for, or the amount of, any assistance under the Canadian Exploration and Development Incentive Program Act (R.S.C. 1985, c. 15 (3rd Suppl.)), the Canadian Exploration Incentive Program Act (R.S.C. 1985, c. 27 (4th Suppl.)), the Ontario Mineral Exploration Program Act (R.S.O. c. O.27) or The Mineral Exploration Incentive Program Act (S.M.1991-1992, c. 45), or

ii.  the making of an election respecting the assistance referred to in subparagraph i and the transfer of such assistance to the holder of the share or the new right in accordance with any of the Acts referred to in that subparagraph;

(b)  an obligation of the corporation, in respect of the share or the new right, to distribute an amount representing a payment out of assistance to which the corporation is entitled under section 25.1 of the Income Tax Act of British Columbia (R.S.B.C. 1996, c. 215) as a consequence of the corporation making expenditures funded by consideration received for shares or new rights issued by the corporation in respect of which the corporation purports to renounce an amount under section 359.2 of the Act; and

(c)  an obligation of any person or partnership to effect an undertaking to indemnify the holder of the share or the new right or, where the holder is a partnership, a member thereof, for an amount not exceeding the amount of the tax payable by the holder or the member of the partnership, as the case may be, under the Act, the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) or the laws of a province other than Québec, as a consequence of

i.  the failure of the corporation to renounce an amount to the holder in respect of the share or the new right, or

ii.  a reduction, pursuant to section 359.15 of the Act or subsection 12.73 of section 66 of the Income Tax Act, of an amount purported to be renounced by the corporation to the holder in respect of the share or the new right;

“new right” means a right issued after 20 December 2002 to acquire a share of the capital stock of a corporation, other than a right issued at a particular time before 1 January 2003

(a)  pursuant to an agreement in writing entered into before 21 December 2002;

(b)  as part of a distribution of rights to the public made in accordance with the terms of a final prospectus, preliminary prospectus, registration statement, offering memorandum or notice, required by law to be filed before distribution of the rights begins, filed before 21 December 2002 with a public authority in Canada in accordance with the securities legislation of the province in which the rights were distributed; or

(c)  to a partnership in which interests were issued as part of a distribution to the public made in accordance with the terms of a final prospectus, preliminary prospectus, registration statement, offering memorandum or notice, required by law to be filed before distribution of the interests begins, filed before 21 December 2002 with a public authority in Canada in accordance with the securities legislation of the province in which the interests were distributed, where all interests in the partnership issued not later than the particular time were issued as part of the distribution or prior to the beginning of the distribution;

“new share” means a share of the capital stock of a corporation issued after 17 June 1987, other than a share issued at a particular time before 1 January 1989,

(a)  pursuant to an agreement in writing entered into before 18 June 1987;

(b)  as part of a distribution of shares to the public made in accordance with the terms of a final prospectus, preliminary prospectus, registration statement, offering memorandum or notice, required by law to be filed before distribution of the shares begins, filed before 18 June 1987 with a public authority in Canada in accordance with the securities legislation of the province in which the shares were distributed; or

(c)  to a partnership in which interests were issued as part of a distribution to the public made in accordance with the terms of a final prospectus, preliminary prospectus, registration statement, offering memorandum or notice, required by law to be filed before distribution of the interests begins, filed before 18 June 1987 with a public authority in Canada in accordance with the securities legislation of the province in which the interests were distributed, where all interests in the partnership issued not later than the particular time were issued as part of the distribution or prior to the beginning of the distribution;

“specified person”, in relation to any particular person, means another person with whom the particular person does not deal at arm’s length or any partnership or trust of which the particular person or the other person is a member or beneficiary, respectively.

s. 359.1R1; O.C. 91-94, s. 11; O.C. 1660-94, s. 7; O.C. 35-96, s. 86; O.C. 1631-96, s. 31; O.C. 1707-97, s. 98; O.C. 1466-98, s. 40; O.C. 1463-2001, s. 57; O.C. 1470-2002, s. 35; O.C. 134-2009, s. 1; O.C. 66-2016, s. 9.

2012-09-01

359.1R1. In this chapter,

“excluded obligation”, in relation to a share issued by a corporation, means

(a)  an obligation of the corporation with respect to

i.  eligibility for, or the amount of, any assistance under the Canadian Exploration and Development Incentive Program Act (R.S.C. 1985, c. 15 (3rd Suppl.)), the Canadian Exploration Incentive Program Act (R.S.C. 1985, c. 27 (4th Suppl.)), the Ontario Mineral Exploration Program Act (S.O. 1989, c. 40) or the Mineral Exploration Incentive Program Act (Manitoba) (S.M. 1990-1991, c. 45), or

ii.  the making of an election respecting the assistance referred to in subparagraph i and the transfer of such assistance to the holder of the share in accordance with any of the Acts referred to in subparagraph i;

(b)  an obligation of the corporation, in respect of the share, to distribute an amount representing a payment out of assistance to which the corporation is entitled under section 25.1 of the Income Tax Act of British Columbia (R.S.B.C. 1996, c. 215) as a consequence of the corporation making expenditures funded by consideration received for shares issued by the corporation in respect of which the corporation purports to renounce an amount under section 359.2 of the Act; and

(c)  an obligation of any person or partnership to effect an undertaking to indemnify the holder of the share or, where the holder is a partnership, a member thereof, for an amount not exceeding the amount of the tax payable by the holder or the member of the partnership, as the case may be, under the Act, the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) or the laws of a province other than Québec, as a consequence of

i.  the failure of the corporation to renounce an amount to the holder in respect of the share, or

ii.  a reduction, pursuant to section 359.15 of the Act or subsection 12.73 of section 66 of the Income Tax Act, of an amount purported to be renounced by the corporation to the holder in respect of the share;

“new share” means a share of the capital stock of a corporation issued after 17 June 1987, other than a share issued at a particular time before 1 January 1989,

(a)  pursuant to an agreement in writing entered into before 18 June 1987;

(b)  as part of a distribution of shares to the public made in accordance with the terms of a final prospectus, preliminary prospectus, registration statement, offering memorandum or notice, required by law to be filed before distribution of the shares begins, filed before 18 June 1987 with a public authority in Canada in accordance with the securities legislation of the province in which the shares were distributed; or

(c)  to a partnership in which interests were issued as part of a distribution to the public made in accordance with the terms of a final prospectus, preliminary prospectus, registration statement, offering memorandum or notice, required by law to be filed before distribution of the interests begins, filed before 18 June 1987 with a public authority in Canada in accordance with the securities legislation of the province in which the interests were distributed, where all interests in the partnership issued not later than the particular time were issued as part of the distribution or prior to the beginning of the distribution;

“specified person”, in relation to any particular person, means another person with whom the particular person does not deal at arm’s length or any partnership or trust of which the particular person or the other person is a member or beneficiary, respectively.

s. 359.1R1; O.C. 91-94, s. 11; O.C. 1660-94, s. 7; O.C. 35-96, s. 86; O.C. 1631-96, s. 31; O.C. 1707-97, s. 98; O.C. 1466-98, s. 40; O.C. 1463-2001, s. 57; O.C. 1470-2002, s. 35; O.C. 134-2009, s. 1.