I-3 - Taxation Act

Section 965.11.17 Disposition versions

2017-12-07

965.11.17. (Repealed).

1988, c. 4, s. 104; 1997, c. 3, s. 71; 1997, c. 85, s. 216; 2017, c. 29, s. 166.

2006-03-01

965.11.17. For the purposes of this Title, “qualified corporation” does not include a corporation the net shareholders’ equity of which, in the period beginning on the first day of the fifth calendar year preceding the calendar year during which it is granted a receipt for a final prospectus or an exemption from filing a prospectus in respect of a share issue, convertible security issue or non-guaranteed convertible security issue, and ending at the time the receipt or exemption is granted, is modified, directly or indirectly, in any manner whatever, as a result of a particular transaction consisting of a transaction or operation or series of transactions or operations other than a transaction or operation or series of transactions or operations referred to in section 965.11.19 if, in the opinion of the Minister, it is reasonable to believe that the particular transaction is equivalent to the redemption of a share of a class of its capital stock other than a share described in section 965.11.18.

The first paragraph applies during the period referred to in the first paragraph until the corporation has, in respect of each particular transaction, made an issue of shares of its capital stock which meet the requirement of paragraph c of section 965.7 and are not qualifying shares or until the net shareholders’ equity of the corporation has been the subject, in respect of each particular transaction, of a transaction or operation or series of transactions or operations if, in the opinion of the Minister, it is reasonable to believe that the transaction or operation or series of transactions or operations is equivalent to the issue of such shares of the capital stock of the corporation, for an amount which, in the opinion of the Minister, is equal to or greater than the amount by which the net shareholders’ equity was modified.

Without restricting the generality of the foregoing, the Minister may render such a decision where, in particular, a corporation makes a large distribution of its surplus, except such a distribution in shares of its capital stock.

1988, c. 4, s. 104; 1997, c. 3, s. 71; 1997, c. 85, s. 216.