I-3 - Taxation Act

Section 749 Disposition versions

2015-10-21

749. Where, in the case referred to in section 746, the dividend is received by the corporation at a particular time in a taxation year ending after 31 December 1975 on a share it owned at the end of its taxation year 1975, it may deduct from its income for the year, in respect of the dividend, the lesser of the amount by which the dividend exceeds the deductions permitted in its respect for the year under sections 584 and 746 and the amount by which the adjusted cost base to the corporation of the share at the end of its taxation year 1975 exceeds the aggregate of

(a)  (paragraph repealed);

(b)  the amounts that the corporation may deduct under subparagraph d of the first paragraph of section 746 for a taxation year ending after 31 December 1975 in respect of the dividends received by it on the share after its taxation year 1975 but before that time;

(c)  the amounts received by the corporation on the share after its 1975 taxation year but before that time

i.  on a reduction, before 20 August 2011, of the paid-up capital of the foreign affiliate in respect of the share, or

ii.  on a reduction, after 19 August 2011, of the paid-up capital of the foreign affiliate in respect of the share that is a qualifying return of capital, within the meaning of section 577.3, in respect of the share; and

(d)  the amounts deducted under this section in respect of the dividends received by it on the share before that time.

1975, c. 22, s. 208; 1977, c. 26, s. 82; 1980, c. 13, s. 67; 1997, c. 3, s. 71; 2015, c. 21, s. 268.

2006-03-01

749. Where, in the case referred to in section 746, the dividend is received by the corporation at a particular time in a taxation year ending after 1975 on a share it owned at the end of its taxation year 1975, it may deduct from its income for the year, in respect of that dividend, the lesser of the amount by which the dividend exceeds the deductions permitted in respect thereof for the year under sections 584 and 746 and the amount by which the adjusted cost base to the corporation of the share at the end of its taxation year 1975 exceeds the aggregate of:

(a)  (paragraph repealed);

(b)  the amounts that the corporation may deduct under paragraph d of section 746 for a taxation year ending after 1975 in respect of the dividends received by it on that share after its taxation year 1975 but before that time;

(c)  the amounts received by the corporation on that share after the end of its 1975 taxation year and before the particular time on a reduction of the paid-up capital of the foreign affiliate in respect of that share; and

(d)  the amounts deducted under this section in respect of the dividends received by it on the share before that time.

1975, c. 22, s. 208; 1977, c. 26, s. 82; 1980, c. 13, s. 67; 1997, c. 3, s. 71.