I-3 - Taxation Act

Section 540.5 Disposition versions

2010-10-27

540.5. The rules in section 540.6 apply if a taxpayer disposes, before 1 January 2013, of an investment in a SIFT wind-up entity (in section 540.6 referred to as the “particular unit”) to a taxable Canadian corporation if

(a)  the disposition occurs during a period (in this section and section 540.6 referred to as the “exchange period”) of no more than 60 days at the end of which all of the interests in the entity that are investments in a SIFT wind-up entity are owned by the corporation;

(b)  the taxpayer receives no consideration for the disposition other than a share (in this section and section 540.6 referred to as the “exchange share”) of the capital stock of the corporation that is issued during the exchange period to the taxpayer by the corporation;

(c)  neither of sections 518 and 529 applies in respect of the disposition; and

(d)  all of the exchange shares issued to holders of interests in the entity that are investments in a SIFT wind-up entity are shares of a single class of the capital stock of the corporation.

2010, c. 25, s. 39.