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I-3, r. 1 - Regulation respecting the Taxation Act
Section 21.6r3
Disposition versions
21.6R3. For the purposes of paragraph e of section 21.6 of the Act, a share of a class of the capital stock of a corporation listed on a designated stock exchange in Canada is a prescribed share at any particular time in respect of another corporation that is registered or licensed under the laws of a province to trade in securities and that holds the share for the purpose of sale in the course of the business ordinarily carried on by it, unless
(a) it may reasonably be considered that the share was acquired as part of a series of transactions or events one of the main purposes of which was to avoid or limit the application of section 740.1 of the Act; or
(b) the share was not acquired by the other corporation in the course of an underwriting of shares of that class to be distributed to the public and
i. dividends are received at the particular time by the other corporation or by the other corporation and corporations controlled by the other corporation in respect of more than 10% of the issued and outstanding shares of that class,
ii. the other corporation is a restricted financial institution and
(1) the share is not a taxable preferred share,
(2) dividends are received at the particular time by the other corporation or by the other corporation and corporations controlled by the other corporation 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 corporation controlled by the other corporation in respect of a share of that class acquired after 15 December 1987 and before that particular time, or
iii. the other corporation is a restricted financial institution and the share:
(1) is not a taxable preferred share,
(2) was acquired after 15 December 1987 and before the particular time, and
(3) was deemed to have been issued after 15 December 1987 and before the particular time by reason of section 21.9 of the Act or paragraph a or b of section 21.9.1 of the Act.
