I-3 - Taxation Act

Section 965.6.0.4 Disposition versions

2017-12-07

965.6.0.4. (Repealed).

1991, c. 8, s. 61; 1992, c. 1, s. 96; 1993, c. 19, s. 79; 1997, c. 3, s. 45; 1997, c. 85, s. 208; 1999, c. 83, s. 273; 2017, c. 29, s. 166.

2006-03-01

965.6.0.4. Where an investment fund has made the election provided in section 965.6.23.1 in respect of its first public security issue consisting of securities that may be included in a stock savings plan, a qualifying share or qualifying non-guaranteed convertible security described in paragraph a of the said section that is acquired by the investment fund in a particular year with the proceeds of the issue for the particular year or, in the case of a qualifying share, that is acquired in a particular year as a result of the exercise of a conversion right conferred on the holder of a convertible security, qualifying non-guaranteed convertible security or preferred share that meets the requirements of paragraph b of section 965.9.1.0.4.2 or 965.9.1.0.5 purchased in the particular year by the investment fund with the proceeds of the issue, is, in respect of the particular year, deemed, for the purposes of subparagraph ii of paragraph b of section 965.6.0.3 and paragraph b of section 965.6.23.1, to be a qualifying share or a qualifying non-guaranteed convertible security, as the case may be, that is the subject of the undertaking given by the investment fund in accordance with the said paragraph a, unless the investment fund designates the share or the security, as the case may be, as not being the subject of the undertaking, and, for that purpose, such a designation cannot be made by the investment fund in respect of a qualifying share or a qualifying non-guaranteed convertible security, as the case may be, except where that qualifying share or that qualifying non-guaranteed convertible security, as the case may be, the other qualifying shares or qualifying non-guaranteed convertible securities, as the case may be, so designated by the investment fund for the particular year and the qualifying shares or qualifying non-guaranteed convertible securities, as the case may be, that are not described in the said paragraph a and that have been acquired in the particular year by the investment fund with the proceeds of the issue or, in the case of qualifying shares, that have been acquired in the particular year by the investment fund as a result of the exercise of a conversion right conferred on the holder of a convertible security, qualifying non-guaranteed convertible security or preferred share that meets the requirements of paragraph b of section 965.9.1.0.4.2 or 965.9.1.0.5 purchased by the investment fund with the proceeds of the issue, may all reasonably be considered to have been acquired with that portion of the proceeds of the issue in excess of the portion, that is the subject of the undertaking given by the investment fund in accordance with the said paragraph a, of the proceeds of the issue for the particular year.

The presumption provided in the first paragraph applies in respect of a qualifying share or a qualifying non-guaranteed convertible security only where the adjusted cost of the aggregate of the other qualifying shares or qualifying non-guaranteed convertible securities, as the case may be, in respect of which the presumption has applied for the particular year is lower than the particular amount referred to in paragraph b of section 965.6.23.1 in respect of the particular year.

1991, c. 8, s. 61; 1992, c. 1, s. 96; 1993, c. 19, s. 79; 1997, c. 3, s. 45; 1997, c. 85, s. 208; 1999, c. 83, s. 273.