I-3 - Taxation Act

Section 965.64 Disposition versions

2006-06-13

965.64. The assets of a corporation are the assets shown in its financial statements submitted to the shareholders for its last taxation year ended before the date of the receipt for the final prospectus or of the exemption from filing a prospectus, or, if such financial statements have not been prepared, or have not been prepared in accordance with generally accepted accounting principles, that would be shown if such financial statements had been prepared in accordance with generally accepted accounting principles.

For the purposes of the first paragraph, the following rules apply in computing the assets of a corporation:

(a)  the amount of the surplus reassessment of its property and the amount of its incorporeal assets shall be subtracted, to the extent that the amount shown in their respect exceeds the expenditure made in their respect; and

(b)  if a consideration for the purchase of incorporeal assets consists of shares of the corporation’s capital stock, it is deemed to be nil.

2006, c. 13, s. 80.