I-3 - Taxation Act

Section 965.6.0.2.0.1 Disposition versions

2017-12-07

965.6.0.2.0.1. (Repealed).

1990, c. 7, s. 90; 1997, c. 85, s. 206; 1999, c. 83, s. 273; 2002, c. 40, s. 91; 2017, c. 29, s. 166.

2006-03-01

965.6.0.2.0.1. For the purposes of section 965.6, the adjusted cost of a qualifying share acquired by an individual, an investment group or an investment fund, as a result of the exercise of a conversion right conferred on the holder of a convertible security, a qualifying non-guaranteed convertible security or a preferred share that meets the requirements of paragraph b of section 965.9.1.0.4.2 or 965.9.1.0.5, shall be computed according to the following rules:

(a)  where the conversion value is stated in the final prospectus or in the application for an exemption from filing a prospectus relating to the issue of the convertible security, qualifying non-guaranteed convertible security or preferred share, as the case may be, taking into consideration that the conversion value represents the cost of the qualifying share to the acquirer thereof and that the qualifying share is issued as part of a public share issue in respect of which the date of the receipt for the final prospectus or, as the case may be, of the exemption from filing a prospectus is in the year of acquisition of the share; and

(b)  in any other case, taking into consideration that the quotient obtained by dividing the principal amount of the convertible security, qualifying non-guaranteed convertible security or preferred share, as the case may be, by the number of shares issued in accordance with the method stated in the final prospectus or the application for an exemption from filing a prospectus relating to the issue of the convertible security, qualifying non-guaranteed convertible security or preferred share, as the case may be, represents the cost of the qualifying share to the acquirer thereof and that the qualifying share is issued as part of a public share issue in respect of which the date of the receipt for the final prospectus or, as the case may be, of the exemption from filing a prospectus is in the year of acquisition of the share.

1990, c. 7, s. 90; 1997, c. 85, s. 206; 1999, c. 83, s. 273; 2002, c. 40, s. 91.