I-3 - Taxation Act

Section 280.11 Disposition versions

2005-05-15

280.11. For the purposes of this division, if an individual receives common shares of the capital stock of a particular corporation (in this section referred to as the “new shares”), as the sole consideration for the disposition by the individual of common shares of the particular corporation or of another corporation (in this section referred to as the “exchanged shares”), the new shares are deemed to be eligible small business corporation shares of the individual and shares of the capital stock of an eligible business corporation that were owned by the individual throughout the period that the exchanged shares were owned by the individual if

(a)  Division XIII, paragraph c of section 528, sections 536 to 539, Chapter V of Title IX or sections 551 to 553.1 and 554 applied in respect of the individual in relation to the new shares;

(b)  the aggregate of all amounts each of which is the individual’s proceeds of disposition of an exchanged share was equal to the aggregate of all amounts each of which is the individual’s adjusted cost base of an exchanged share immediately before the disposition; and

(c)  the disposition of the exchanged shares was a qualifying disposition of the individual.

2003, c. 2, s. 99; 2009, c. 5, s. 101.