I-3 - Taxation Act

Section 740.7 Disposition versions

2006-03-01

740.7. For the purposes of section 740.5 and this section, the expression,

(a)  “exempt share” means

i.  a prescribed share;

ii.  a share of the capital stock of a corporation issued before 5:00 p.m. Eastern Standard Time, 27 November 1986, other than a share held at that time by the issuer, or by any person or partnership where the issuer may become entitled to receive any amount after that time by way of subscription proceeds or contribution of capital with respect to that share pursuant to an agreement made before that time;

iii.  a share that was, at the time the dividend referred to in section 740.5 was received, a share described in section 21.6.1 during the applicable period referred to in that section;

(b)  “issuer” means the other corporation referred to in section 740.5, a person with whom that corporation does not deal at arm’s length and any partnership or trust of which that corporation, or a person with whom that corporation does not deal at arm’s length, is a member or beneficiary, but does not include the particular corporation referred to in that section;

(c)  “investor” means the particular corporation referred to in section 740.5, a person with whom that corporation does not deal at arm’s length and any partnership or trust of which that corporation, or a person with whom that corporation does not deal at arm’s length, is a member or beneficiary, but does not include the other corporation referred to in that section.

1989, c. 77, s. 84; 1995, c. 49, s. 168; 1997, c. 3, s. 71.