I-3 - Taxation Act

Section 21.4.2.4 Disposition versions

2017-02-08

21.4.2.4. For the purpose of applying paragraph a of section 21.4.2.2 in respect of a person or group of persons, the following rules apply:

(a)  if it is reasonable to conclude that one of the reasons that one or more transactions or events occur is to cause a person or group of persons not to hold shares having a fair market value that exceeds 75% of the fair market value of all the shares of the capital stock of a corporation, no account is to be taken of those transactions or events; and

(b)  the person, or each member of the group of persons, is deemed to have exercised each right that is held by the person or a member of the group and that is referred to in paragraph b of section 20 in respect of a share of the corporation referred to in paragraph a of section 21.4.2.2.

2017, c. 1, s. 78.