I-3 - Taxation Act

Section 578.1 Disposition versions

2006-06-13

578.1. In this chapter, an eligible distribution is a distribution of property to a taxpayer by a particular corporation if

(a)  the distribution is made in relation to all of the taxpayer’s common shares of the capital stock of the particular corporation, in this chapter referred to as the “original shares” ;

(b)  the property distributed consists solely of common shares of the capital stock of another corporation that were owned by the particular corporation immediately before their distribution to the taxpayer, in this chapter referred to as the “spin-off shares” ;

(c)  where the distribution is a prescribed distribution, the conditions set out in the first paragraph of section 578.2 are satisfied;

(d)  where the distribution is not a prescribed distribution, the conditions set out in the second paragraph of section 578.2 are satisfied;

(e)  the particular corporation provides to the Minister information satisfactory to the Minister establishing the elements described in the first paragraph of section 578.3, before the end of the sixth month following the day on which the particular corporation first distributes a spin-off share in respect of the distribution; and

(f)  the taxpayer makes a valid election under subsection 2 of section 86.1 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), to have the provisions of that section apply to the distribution and provides to the Minister information satisfactory to the Minister establishing the elements described in the second paragraph of section 578.3.

2004, c. 8, s. 116; 2006, c. 13, s. 41.

2006-03-01

578.1. In this chapter, an eligible distribution is a distribution of property to a taxpayer by a particular corporation if

(a)  the distribution is made in relation to all of the taxpayer’s common shares of the capital stock of the particular corporation, in this chapter referred to as the "original shares";

(b)  the property distributed consists solely of common shares of the capital stock of another corporation that were owned by the particular corporation immediately before their distribution to the taxpayer, in this chapter referred to as the "spin-off shares";

(c)  where the distribution is a prescribed distribution, the conditions set out in the first paragraph of section 578.2 are satisfied;

(d)  where the distribution is not a prescribed distribution, the conditions set out in the second paragraph of section 578.2 are satisfied;

(e)  the particular corporation provides to the Minister information satisfactory to the Minister establishing the elements described in the first paragraph of section 578.3, before the end of the sixth month following the day on which the particular corporation first distributes a spin-off share in respect of the distribution; and

(f)  except where Part XI of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) applies in respect of the taxpayer, the taxpayer makes a valid election under subsection 2 of section 86.1 of that Act, to have the provisions of that section apply to the distribution and provides to the Minister information satisfactory to the Minister establishing the elements described in the second paragraph of section 578.3.

2004, c. 8, s. 116.