I-3 - Taxation Act

Section 1049.4.1 Disposition versions

2011-11-01

1049.4.1. Where a particular share of the capital stock of a qualified legal person, within the meaning of the Act respecting Québec business investment companies (chapter S-29.1), that forms part of a qualified investment, or a share substituted therefor, may be purchased or redeemed by the qualified legal person as a result of a transaction occurring, after 26 April 1990, during the 60 months following the acquisition of the particular share that forms part of a qualified investment, the qualified legal person incurs a penalty, in respect of the particular share or the share substituted therefor, equal to 40% of the lesser of

(a)  the amount obtained by applying the percentage determined in section 965.31.1 in respect of the qualified investment to the amount that would be the amount of purchase or redemption of the particular share or the share substituted therefor, as the case may be, if the purchase or redemption were made immediately after the transaction, and

(b)  the quotient obtained by dividing, by the number of shares that form part of the qualified investment, the amount obtained by applying the percentage referred to in paragraph a to the total amount of the qualified investment.

The first paragraph does not apply where a particular share, or a share substituted therefor, that may be purchased or redeemed as a result of a transaction occurring, after 9 March 1999, during the 60 months following the acquisition of the particular share that forms part of a qualified investment, satisfies the conditions set out in subparagraphs 1 to 3 of the first paragraph of section 21 of the Québec Business Investment Companies Regulation (chapter S-29.1, r. 1).

1991, c. 8, s. 86; 2000, c. 39, s. 205; 2006, c. 13, s. 199.

2006-06-13

1049.4.1. Where a particular share of the capital stock of a qualified legal person, within the meaning of the Act respecting Québec business investment companies (chapter S-29.1), that forms part of a qualified investment, or a share substituted therefor, may be purchased or redeemed by the qualified legal person as a result of a transaction occurring, after 26 April 1990, during the 60 months following the acquisition of the particular share that forms part of a qualified investment, the qualified legal person incurs a penalty, in respect of the particular share or the share substituted therefor, equal to 40% of the lesser of

(a)  the amount obtained by applying the percentage determined in section 965.31.1 in respect of the qualified investment to the amount that would be the amount of purchase or redemption of the particular share or the share substituted therefor, as the case may be, if the purchase or redemption were made immediately after the transaction, and

(b)  the quotient obtained by dividing, by the number of shares that form part of the qualified investment, the amount obtained by applying the percentage referred to in paragraph a to the total amount of the qualified investment.

The first paragraph does not apply where a particular share, or a share substituted therefor, that may be purchased or redeemed as a result of a transaction occurring, after 9 March 1999, during the 60 months following the acquisition of the particular share that forms part of a qualified investment, satisfies the conditions set out in subparagraphs 1 to 3 of the first paragraph of section 21 of the Québec Business Investment Companies Regulation made by Order in Council 1627-85 (1985, G.O. 2, 3750).

1991, c. 8, s. 86; 2000, c. 39, s. 205; 2006, c. 13, s. 199.

2006-03-01

1049.4.1. Where a particular share of the capital stock of a qualified legal person, within the meaning of the Act respecting Québec business investment companies (chapter S-29.1), that forms part of a qualified investment, or a share substituted therefor, may be purchased or redeemed by the qualified legal person as a result of a transaction occurring, after 26 April 1990, during the 60 months following the acquisition of the particular share that forms part of a qualified investment, the qualified legal person incurs a penalty, in respect of the particular share or the share substituted therefor, equal to 40% of the lesser of

(a)  the amount obtained by applying the percentage determined in section 965.31.1 in respect of the qualified investment to the amount that would be the amount of purchase or redemption of the particular share or the share substituted therefor, as the case may be, if the purchase or redemption were made immediately after the transaction, and

(b)  the quotient obtained by dividing, by the number of shares that form part of the qualified investment, the amount obtained by applying the percentage referred to in paragraph a to the total amount of the qualified investment.

1991, c. 8, s. 86; 2000, c. 39, s. 205.