I-3 - Taxation Act

Section 510.1 Disposition versions

2006-03-01

510.1. Section 508 does not apply to deem a dividend to have been received by a shareholder of a public corporation where that section would otherwise have been applicable as a consequence of the application of section 506 and the following conditions are met:

(a)  the shareholder is an individual resident in Canada who deals at arm’s length with the corporation;

(b)  the shares redeemed, acquired or cancelled are prescribed shares of the capital stock of the corporation.

1984, c. 15, s. 109; 1985, c. 25, s. 94; 1987, c. 67, s. 121; 1997, c. 3, s. 71.