I-3 - Taxation Act

Section 1049.2.2.3 Disposition versions

2017-12-07

1049.2.2.3. (Repealed).

1988, c. 4, s. 132; 1992, c. 1, s. 186; 1997, c. 3, s. 71; 2003, c. 9, s. 374; 2017, c. 29, s. 201.

2006-03-01

1049.2.2.3. Where particular shares of the capital stock of a corporation or particular non-guaranteed convertible securities, within the meaning of paragraph j.4 of section 965.1, of a corporation issued with the stipulation that they could be included in a stock savings plan or issued as a replacement for shares or for non-guaranteed convertible securities, within the meaning of the said paragraph j.4, issued with such a stipulation or issued in substitution for such shares or non-guaranteed convertible securities, are, after 16 December 1986 and in the year in which the shares or the non-guaranteed convertible securities issued with such a stipulation were issued or in the two years following that year, the subject of a replacement, without any consideration other than a share or a non-guaranteed convertible security, as the case may be, following a transaction described in section 536, 541 or 544, the corporation incurs a penalty equal to 25% of the amount, if any, by which the aggregate of the average adjusted cost of each such particular share or particular non-guaranteed convertible security distributed in Québec to an individual, other than a trust, to an investment group or to an investment fund, exceeds the aggregate of the adjusted cost of each share or each non-guaranteed convertible security, as the case may be, issued as a replacement for such particular shares or particular non-guaranteed convertible securities, which would have been determined under section 965.6, taking section 965.9.1.0.0.1 into account, or under section 965.6.0.5, as the case may be, if the share or the non-guaranteed convertible security issued as a replacement had been issued at the same time as the particular share or the particular non-guaranteed convertible security.

The first paragraph does not apply to a share that is the subject of a transaction carried out by virtue of an obligation stated in the articles of a corporation before 7 May 1986.

1988, c. 4, s. 132; 1992, c. 1, s. 186; 1997, c. 3, s. 71; 2003, c. 9, s. 374.