I-3 - Taxation Act

Section 560.1.2 Disposition versions

2015-10-26

560.1.2. For the purposes of subparagraph ii of subparagraph d of the third paragraph of section 559, property acquired by any person in substitution for particular property or properties distributed to the parent on the winding-up includes the following property but not the property described in the second paragraph:

(a)  property, other than specified property, owned by the person at a particular time after the acquisition of control referred to in subparagraph i of that subparagraph d more than 10% of the fair market value of which is, at the particular time, attributable to the particular property or properties; and

(b)  property owned by the person at a particular time after the acquisition of control referred to in subparagraph i of that subparagraph d the fair market value of which is, at the particular time, determinable primarily by reference to the fair market value of, or to any proceeds from a disposition of, the particular property or properties.

The property to which the first paragraph refers is

(a)  money;

(b)  property that was not owned by the person at a particular time after the acquisition of control referred to in subparagraph i of subparagraph d of the third paragraph of section 559;

(c)  property described in subparagraph a of the first paragraph if the only reason the property is described in that subparagraph is because a specified property described in any of subparagraphs a to d of the first paragraph of section 560.1.3 was received as consideration for the acquisition of a share of the capital stock of the subsidiary in the circumstances described in those subparagraphs a to d;

(d)  a share of the capital stock of the subsidiary or a debt owing by the subsidiary, where the share or debt was owned by the parent immediately before the winding-up; or

(e)  a share of the capital stock of a corporation or a debt owing by a corporation, where the fair market value of the share or debt was not, at any time after the beginning of the winding-up, wholly or partly attributable to property distributed to the parent on the winding-up.

2000, c. 5, s. 128; 2015, c. 24, s. 86.

2006-03-01

560.1.2. For the purposes of subparagraph ii of subparagraph d of the third paragraph of section 559, property acquired by any person in substitution for particular property or properties distributed to the parent on the winding-up includes the following property but not the property described in the second paragraph:

(a)  property, other than a specified property, owned by the person at a particular time after the acquisition of control referred to in subparagraph i of that subparagraph d the fair market value of which is, at the particular time, wholly or partly attributable to the particular property or properties; and

(b)  property owned by the person at a particular time after the acquisition of control referred to in subparagraph i of that subparagraph d the fair market value of which is, at the particular time, determinable primarily by reference to the fair market value of, or to any proceeds from a disposition of, the particular property or properties.

The property to which the first paragraph refers is

(a)  money;

(b)  property that was not owned by the person at a particular time after the acquisition of control referred to in subparagraph i of subparagraph d of the third paragraph of section 559; or

(c)  property described in subparagraph a of the first paragraph if the only reason the property is described in that subparagraph is because a specified property described in any of subparagraphs a to d of the first paragraph of section 560.1.3 was received as consideration for the acquisition of a share of the capital stock of the subsidiary in the circumstances described in those subparagraphs a to d.

2000, c. 5, s. 128.