I-3 - Taxation Act

Section 308.1 Disposition versions

2019-06-19

308.1. Despite any other provision of this Part, where a corporation resident in Canada (in this section and sections 308.2 to 308.2.0.2 referred to as the  “dividend recipient”) receives a taxable dividend described in section 308.2 in respect of which it is entitled to a deduction under any of sections 738, 740 and 845, the amount of that dividend, other than the prescribed portion of it, is deemed

(a)  not to be a dividend received by the dividend recipient;

(b)  where the dividend is received on a redemption, acquisition or cancellation of a share, by the corporation that issued the share, under section 508 to the extent that it refers to a dividend deemed paid under section 505 or 506, to be proceeds of disposition of that share to the extent that the amount is not otherwise included in computing those proceeds; and

(c)  where paragraph b does not apply in respect of a dividend, to be a gain of the dividend recipient from the disposition of a capital property for the year in which the dividend was received.

1982, c. 5, s. 66; 1997, c. 3, s. 71; 2000, c. 5, s. 74; 2019, c. 14, s. 108.

2006-03-01

308.1. Notwithstanding any other provision of this Part, where a corporation resident in Canada receives a taxable dividend referred to in section 308.2 in respect of which it is entitled to a deduction under section 738, 740 or 845, the amount of that dividend, other than the prescribed portion of it, is deemed

(a)  not to be a dividend received by the corporation;

(b)  where a corporation has disposed of the share referred to in section 308.2, to be proceeds of disposition of that share to the extent that the amount is not otherwise included in computing such proceeds; and

(c)  where a corporation has not disposed of the share referred to in section 308.2, to be a gain of the corporation for the year in which the dividend was received from the disposition of a capital property.

1982, c. 5, s. 66; 1997, c. 3, s. 71; 2000, c. 5, s. 74.