I-3 - Taxation Act

Section 308.2.1 Disposition versions

2019-06-19

308.2.1. Section 308.1 does not apply, however, to any dividend received by a particular corporation, on a redemption, acquisition or cancellation of a share, by the corporation that issued the share, under section 508 to the extent that it refers to a dividend deemed paid under section 505 or 506, if, as part of a transaction or event or a series of transactions or events as part of which the dividend was received, there was not at a particular time

(a)  a disposition, to a person or partnership that was an unrelated person immediately before the particular time, of property, other than

i.  money disposed of on the payment of a dividend or on a reduction of the paid-up capital of a share, and

ii.  property disposed of for proceeds of disposition that are not less than its fair market value;

(b)  a significant increase, other than as a consequence of a disposition of shares of the capital stock of a corporation for proceeds of disposition that are not less than their fair market value, in the total direct interest in any corporation of one or more persons or partnerships that were unrelated persons immediately before the particular time;

(c)  a disposition, to a person or partnership who was an unrelated person immediately before the particular time, of

i.  shares of the capital stock of the dividend-payer corporation, or

ii.  property, other than shares of the capital stock of the particular corporation, more than 10% of the fair market value of which was, at any time during the course of the series of transactions or events, derived from a combination of shares of the capital stock and debt of the corporation that paid the dividend;

(d)  after the time the dividend was received, a disposition, to a person or partnership that was an unrelated person immediately before the particular time, of

i.  shares of the capital stock of the particular corporation, or

ii.  property more than 10% of the fair market value of which was, at any time during the course of the series of transactions or events, derived from a combination of shares of the capital stock and debt of the particular corporation; and

(e)  a significant increase in the total of all direct interests in the corporation that paid the dividend of one or more persons or partnerships who were unrelated persons immediately before the particular time.

2000, c. 5, s. 76; 2009, c. 15, s. 72; 2015, c. 24, s. 55; 2019, c. 14, s. 110.

2015-10-26

308.2.1. Section 308.1 does not apply, however, to any dividend received by a particular corporation if, as part of a transaction or event or a series of transactions or events as a part of which the dividend was received, there was not at any particular time

(a)  a disposition, to a person or partnership that was an unrelated person immediately before the particular time, of property, other than

i.  money disposed of on the payment of a dividend or on a reduction of the paid-up capital of a share, and

ii.  property disposed of for proceeds of disposition that are not less than its fair market value;

(b)  a significant increase, other than as a consequence of a disposition of shares of the capital stock of a corporation for proceeds of disposition that are not less than their fair market value, in the total direct interest in any corporation of one or more persons or partnerships that were unrelated persons immediately before the particular time;

(c)  a disposition, to a person or partnership who was an unrelated person immediately before the particular time, of

i.  shares of the capital stock of the dividend-payer corporation, or

ii.  property, other than shares of the capital stock of the particular corporation, more than 10% of the fair market value of which was, at any time during the course of the series of transactions or events, derived from a combination of shares of the capital stock and debt of the corporation that paid the dividend;

(d)  after the time the dividend was received, a disposition, to a person or partnership that was an unrelated person immediately before the particular time, of

i.  shares of the capital stock of the particular corporation, or

ii.  property more than 10% of the fair market value of which was, at any time during the course of the series of transactions or events, derived from a combination of shares of the capital stock and debt of the particular corporation; and

(e)  a significant increase in the total of all direct interests in the corporation that paid the dividend of one or more persons or partnerships who were unrelated persons immediately before the particular time.

2000, c. 5, s. 76; 2009, c. 15, s. 72; 2015, c. 24, s. 55.

2009-06-04

308.2.1. Section 308.1 does not apply, however, to any dividend received by a particular corporation if, as part of a transaction or event or a series of transactions or events as a part of which the dividend was received, there was not at any particular time

(a)  a disposition, to a person or partnership that was an unrelated person immediately before the particular time, of property, other than

i.  money disposed of on the payment of a dividend or on a reduction of the paid-up capital of a share, and

ii.  property disposed of for proceeds of disposition that are not less than its fair market value;

(b)  a significant increase, other than as a consequence of a disposition of shares of the capital stock of a corporation for proceeds of disposition that are not less than their fair market value, in the total direct interest in any corporation of one or more persons or partnerships that were unrelated persons immediately before the particular time;

(c)  a disposition, to a person or partnership who was an unrelated person immediately before the particular time, of

i.  shares of the capital stock of the corporation that paid the dividend, or

ii.  property, other than shares of the capital stock of the particular corporation, more than 10% of the fair market value of which was, at any time during the course of the series of transactions or events, derived from shares of the capital stock of the corporation that paid the dividend;

(d)  after the time the dividend was received, a disposition, to a person or partnership that was an unrelated person immediately before the particular time, of

i.  shares of the capital stock of the particular corporation, or

ii.  property more than 10% of the fair market value of which was, at any time during the course of the series of transactions or events, derived from shares of the capital stock of the particular corporation; and

(e)  a significant increase in the total of all direct interests in the corporation that paid the dividend of one or more persons or partnerships who were unrelated persons immediately before the particular time.

2000, c. 5, s. 76; 2009, c. 15, s. 72.

2006-03-01

308.2.1. Section 308.1 does not apply, however, to any dividend received by a particular corporation if, as part of a transaction or event or a series of transactions or events as a part of which the dividend was received, there was not at any particular time

(a)  a disposition, to a person or partnership that was an unrelated person immediately before the particular time, of property, other than

i.  money disposed of on the payment of a dividend or on a reduction of the paid-up capital of a share, and

ii.  property disposed of for proceeds of disposition that are not less than its fair market value;

(b)  a significant increase, other than as a consequence of a disposition of shares of the capital stock of a corporation for proceeds of disposition that are not less than their fair market value, in the total direct interest in any corporation of one or more persons or partnerships that were unrelated persons immediately before the particular time;

(c)  a disposition, to a person or partnership who was an unrelated person immediately before the particular time, of

i.  shares of the capital stock of the corporation that paid the dividend, or

ii.  property more than 10% of the fair market value of which was, at any time during the course of the series of transactions or events, derived from shares of the capital stock of the corporation that paid the dividend;

(d)  after the time the dividend was received, a disposition, to a person or partnership that was an unrelated person immediately before the particular time, of

i.  shares of the capital stock of the particular corporation, or

ii.  property more than 10% of the fair market value of which was, at any time during the course of the series of transactions or events, derived from shares of the capital stock of the particular corporation; and

(e)  a significant increase in the total of all direct interests in the corporation that paid the dividend of one or more persons or partnerships who were unrelated persons immediately before the particular time.

2000, c. 5, s. 76.