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I-3 - Taxation Act
Section 776.1.5.0.2
Disposition versions
776.1.5.0.2. Where at a particular time a corporation referred to in section 776.1.1 redeems original shares in the circumstances described in the second paragraph of section 776.1.5.0.1, the individual shall, in a particular taxation year or within 60 days after the end of that year that is included in a particular participation period of the individual, acquire replacement shares for an amount determined by the formula
[(A − B)/(15 − C)].
In the formula provided for in the first paragraph,
(a) A is
i. an amount equal to zero where
(1) the individual died or ceased to be resident in Canada in the particular taxation year, or
(2) the completion date in respect of an eligible amount of the individual is in the particular taxation year, and
ii. in any other case, the aggregate of all eligible amounts of the individual received by the individual in taxation years preceding the particular taxation year and that are included in the particular participation period of the individual;
(b) B is the aggregate of all amounts each of which is
i. an amount paid by the individual on the acquisition of replacement shares in a taxation year preceding the particular taxation year or within 60 days after the end of that preceding year that is included in the particular participation period of the individual,
ii. 100/15 of an amount that the individual is required to pay under section 1086.14 for a taxation year that precedes the particular taxation year and that is included in the particular participation period of the individual in respect of replacement shares that were not acquired by the individual and that relate to original shares other than original shares described in subparagraph iii or iv,
iii. 400% of an amount that the individual is required to pay under section 1086.14 for a taxation year that precedes the particular taxation year and that is included in the particular participation period of the individual in respect of replacement shares that were not acquired by the individual and that relate to original shares referred to in paragraph b of section 776.1.1 and acquired by the individual in the period specified in the second paragraph of section 776.1.1.1, or
iv. 500% of an amount that the individual is required to pay under section 1086.14 for a taxation year that precedes the particular taxation year and that is included in the particular participation period of the individual in respect of replacement shares that were not acquired by the individual and that relate to original shares referred to in paragraph b of section 776.1.1 and acquired by the individual in the period specified in the second paragraph of section 776.1.1.2; and
(c) C is the lesser of 14 and the number of taxation years of the individual that end in the period that begins on 1 January of the first calendar year beginning after the completion date in respect of an eligible amount of the individual and that ends at the beginning of the particular taxation year.
Where the Minister so directs, an individual who, in a taxation year, pays an amount, other than an amount paid in the first 60 days of the year, for the acquisition of replacement shares, is deemed to have paid that amount at the beginning of the year and not at the time it was actually paid.
776.1.5.0.2. Where at a particular time a corporation referred to in section 776.1.1 redeems original shares in the circumstances described in the second paragraph of section 776.1.5.0.1, the individual shall, in a particular taxation year or within 60 days after the end of that year that is included in a particular participation period of the individual, acquire replacement shares for an amount determined by the formula
[(A − B)/(15 − C)].
In the formula provided for in the first paragraph,
(a) A is
i. an amount equal to zero where
(1) the individual died or ceased to be resident in Canada in the particular taxation year, or
(2) the completion date in respect of an eligible amount of the individual is in the particular taxation year, and
ii. in any other case, the aggregate of all eligible amounts of the individual received by the individual in taxation years preceding the particular taxation year and that are included in the particular participation period of the individual;
(b) B is the aggregate of all amounts each of which is
i. an amount paid by the individual on the acquisition of replacement shares in a taxation year preceding the particular taxation year or within 60 days after the end of that preceding year that is included in the particular participation period of the individual,
ii. 100/15 of an amount that the individual is required to pay under section 1086.14 for a taxation year that precedes the particular taxation year and that is included in the particular participation period of the individual in respect of replacement shares that were not acquired by the individual and that relate to original shares other than original shares described in subparagraph iii, or
iii. 400% of an amount that the individual is required to pay under section 1086.14 for a taxation year that precedes the particular taxation year and that is included in the particular participation period of the individual in respect of replacement shares that were not acquired by the individual and that relate to original shares referred to in paragraph b of section 776.1.1 and acquired by the individual in the period specified in the second paragraph of section 776.1.1.1; and
(c) C is the lesser of 14 and the number of taxation years of the individual that end in the period that begins on 1 January of the first calendar year beginning after the completion date in respect of an eligible amount of the individual and that ends at the beginning of the particular taxation year.
Where the Minister so directs, an individual who, in a taxation year, pays an amount, other than an amount paid in the first 60 days of the year, for the acquisition of replacement shares, is deemed to have paid that amount at the beginning of the year and not at the time it was actually paid.
776.1.5.0.2. Where at a particular time a corporation referred to in section 776.1.1 redeems original shares in the circumstances described in the second paragraph of section 776.1.5.0.1, the individual shall, in a particular taxation year or within 60 days after the end of that year that is included in a particular participation period of the individual, acquire replacement shares for an amount determined by the formula
[(A − B)/(15 − C)].
In the formula provided for in the first paragraph,
(a) A is
i. an amount equal to zero where
(1) the individual died or ceased to be resident in Canada in the particular taxation year, or
(2) the completion date in respect of an eligible amount of the individual is in the particular taxation year, and
ii. in any other case, the aggregate of all eligible amounts of the individual received by the individual in taxation years preceding the particular taxation year and that are included in the particular participation period of the individual;
(b) B is the aggregate of all amounts paid by the individual on the acquisition of replacement shares in taxation years preceding the particular taxation year or within the first 60 days after the end of those years that are included in the particular participation period of the individual; and
(c) C is the lesser of 14 and the number of taxation years of the individual that end in the period that begins on 1 January of the first calendar year beginning after the completion date in respect of an eligible amount of the individual and that ends at the beginning of the particular taxation year.
Where the Minister so directs, an individual who, in a taxation year, pays an amount, other than an amount paid in the first 60 days of the year, for the acquisition of replacement shares, is deemed to have paid that amount at the beginning of the year and not at the time it was actually paid.
