I-3 - Taxation Act

Section 1117 Disposition versions

2020-09-24

1117. Subject to section 1117.1, a corporation is a mutual fund corporation at any time in a taxation year if, at that time, it is a prescribed corporation or:

(a)  it is a Canadian corporation which is a public corporation;

(b)  its only undertaking is

i.  the investing of its funds in property, other than immovable property or a right in immovable property,

ii.  the acquiring, holding, maintaining, improving, leasing or managing of any immovable property, or any right in immovable property, that is capital property of the corporation, or

iii.  any combination of the activities described in subparagraphs i and ii;

(c)  the issued shares of its capital stock include, for a value at least equal to 95% of the fair market value of all the issued shares, without regard to the voting rights:

i.  shares including conditions requiring the corporation to redeem, upon application of the holder and at the price fixed and payable according to the conditions, the said shares, in whole or in part, if they are fully paid-up; or

ii.  shares meeting the conditions prescribed as to their redemption.

1972, c. 23, s. 832; 1993, c. 16, s. 351; 1996, c. 39, s. 267; 1997, c. 3, s. 71; 2001, c. 7, s. 162; 2020, c. 16, s. 182.

2006-03-01

1117. Subject to section 1117.1, a corporation is a mutual fund corporation at any time in a taxation year if, at that time, it is a prescribed corporation or:

(a)  it is a Canadian corporation which is a public corporation;

(b)  its only undertaking is

i.  the investing of its funds in property, other than immovable property or an interest in immovable property,

ii.  the acquiring, holding, maintaining, improving, leasing or managing of any immovable property, or an interest in immovable property, that is capital property of the corporation, or

iii.  any combination of the activities described in subparagraphs i and ii;

(c)  the issued shares of its capital stock include, for a value at least equal to 95% of the fair market value of all the issued shares, without regard to the voting rights:

i.  shares including conditions requiring the corporation to redeem, upon application of the holder and at the price fixed and payable according to the conditions, the said shares, in whole or in part, if they are fully paid-up; or

ii.  shares meeting the conditions prescribed as to their redemption.

1972, c. 23, s. 832; 1993, c. 16, s. 351; 1996, c. 39, s. 267; 1997, c. 3, s. 71; 2001, c. 7, s. 162.