I-3 - Taxation Act

Section 589.3 Disposition versions

2010-10-27

589.3. If a partnership disposes at a particular time of excluded property that are shares of a class of the capital stock of a foreign affiliate of a particular corporation resident in Canada, the disposition results in a taxable capital gain for a foreign affiliate (in this section referred to as the “disposing corporation”) of the particular corporation, and subsection 1.3 of section 93 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)) applies in respect of the disposition, the particular corporation is deemed to have made at that time the election referred to in section 589.2 in relation to the number of shares of that class of the capital stock of the foreign affiliate that is the amount by which the number of those shares that are deemed to be owned by the disposing corporation under section 592.1 immediately before the disposition exceeds the number of those shares that are deemed to be owned by the disposing corporation under that section immediately after the disposition.

2004, c. 8, s. 119; 2010, c. 25, s. 48.

2006-03-01

589.3. Where a partnership disposes at a particular time of excluded property that are shares of a class of the capital stock of a foreign affiliate of a particular corporation resident in Canada and the disposition results in a taxable capital gain for a foreign affiliate, in this section referred to as the “disposing corporation”, of the particular corporation, the particular corporation is deemed to have made an election under section 589.2 in relation to the number of shares of that class of the capital stock of the foreign affiliate that is the amount by which the number of those shares that are deemed to be owned by the disposing corporation under section 592.1 immediately before the disposition exceeds the number of those shares that are deemed to be owned by the disposing corporation under that section immediately after the disposition.

2004, c. 8, s. 119.