308.3.2. For the purposes of paragraph b of section 308.3.1,(a) in determining whether the vendor referred to in subparagraph i of the said paragraph b is at a particular time a specified shareholder of a transferee corporation or of a distributing corporation, the references in sections 21.17 and 21.18 to “taxpayer” shall be read as references to “person or partnership”, with the necessary modifications;
(b) a corporation that is formed by the amalgamation of two or more corporations is deemed to be a continuation of each of the predecessor corporations;
(c) subject to paragraph d, each particular person who acquired a share of the capital stock of a distributing corporation in contemplation of a distribution by the distributing corporation is deemed, in respect of that acquisition, not to be related to the person from whom the particular person acquired the share unlessi. the particular person acquired all the shares of the capital stock of the distributing corporation that were owned, at any time during the course of the series of transactions or events that included the distribution and before the acquisition, by the other person, or
ii. immediately after the reorganization in the course of which the distribution was made, the particular person was related to the distributing corporation;
(d) where a share is acquired by an individual from a personal trust in satisfaction of all or a part of the individual’s capital interest in the trust, the individual is deemed, in respect of that acquisition, to be related to the trust;
(e) subject to paragraph f, where at any time a share of the capital stock of a corporation is redeemed or cancelled, otherwise than on an amalgamation where the only consideration received or receivable for the share by the shareholder on the amalgamation is a share of the capital stock of the corporation formed by the amalgamation, the corporation is deemed to have acquired the share at that time;
(f) where a share of the capital stock of a corporation is redeemed, acquired or cancelled by the corporation pursuant to the exercise of a statutory right of dissent by the holder of the share, the corporation is deemed not to have acquired the share;
(g) control of a corporation is deemed not to have been acquired by a person or group of persons where it is so acquired solely because ofi. the incorporation of the corporation, or
ii. the acquisition by an individual of one or more shares for the sole purpose of qualifying as a director of the corporation; and
(h) in relation to a distribution each corporation (other than a qualified person in relation to the distribution) that is a shareholder and specified shareholder of the distributing corporation at any time during the course of a series of transactions or events, a part of which includes the distribution made by the distributing corporation, is deemed to be a transferee corporation in relation to the distributing corporation.