I-3 - Taxation Act

Section 1049.2.7.2 Disposition versions

2017-12-07

1049.2.7.2. (Repealed).

1991, c. 8, s. 85; 1992, c. 1, s. 194; 1993, c. 19, s. 139; 1997, c. 85, s. 285; 1999, c. 83, s. 273; 2017, c. 29, s. 201.

2006-03-01

1049.2.7.2. Where, in a year, as a result of the administration of an investment fund by an administrator or trustee, the investment fund is unable to fulfill its undertaking under paragraph b of section 965.6.23.1 in respect of a public security issue made by the investment fund in the year and, in the final prospectus or the exemption from filing a prospectus relating to the issue, a percentage is stipulated to determine the adjusted cost of securities that are qualifying securities, the administrator or trustee incurs a penalty equal to 25% of the amount by which

(a)  the excess of the adjusted cost of the aggregate of the qualifying securities issued in the year that are valid qualifying securities over the particular amount referred to in the said paragraph b in respect of the year, exceeds

(b)  the adjusted cost of the qualifying shares or qualifying non-guaranteed convertible securities acquired by the investment fund during the year with that portion of the proceeds of the issue of valid qualifying securities issued in the year that exceeds the particular amount referred to in the said paragraph b in respect of the year, or, in the case of qualifying shares, acquired by it during the year 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 meeting the requirements set forth in paragraph b of section 965.9.1.0.4.2 or 965.9.1.0.5 purchased in the year by the investment fund with that portion of the proceeds of the issue, other than qualifying shares or qualifying non-guaranteed convertible securities having already been used, in respect of the year, for the purposes of paragraph c of section 965.6.23.1 or a qualifying share or qualifying non-guaranteed convertible security referred to in section 965.6.0.4 in respect of the year.

1991, c. 8, s. 85; 1992, c. 1, s. 194; 1993, c. 19, s. 139; 1997, c. 85, s. 285; 1999, c. 83, s. 273.