I-3 - Taxation Act

Section 485.19 Disposition versions

2006-03-01

485.19. For the purposes of this subdivision,

(a)  notwithstanding section 485, “forgiven amount” in respect of an obligation has the meaning assigned by the second paragraph of section 37.0.1 or 111.1, as the case may be, where an amount would be included in computing a person’s income under section 37 or 111 as a consequence of the settlement of the obligation if the obligation were settled without any payment being made in satisfaction of its principal amount;

(b)  subparagraphs a, b, k, m and o of the first paragraph of section 485.3 apply; and

(c)  a person is deemed to have a significant interest in a corporation at any time if the person owned at that time shares of the capital stock of the corporation

i.  that would give the person 25% or more of the votes that could be cast under all circumstances at the annual meeting of shareholders of the corporation, or

ii.  having a fair market value of 25% or more of the fair market value of all the issued shares of the corporation.

For the purposes of subparagraph c of the first paragraph, a person is deemed to own at any time each share of the capital stock of a corporation that is owned, otherwise than because of this paragraph, at that time by another person with whom the person does not deal at arm’s length.

1996, c. 39, s. 142; 1997, c. 3, s. 71.