I-3 - Taxation Act

Section 359.9.1 Disposition versions

2006-03-01

359.9.1. For the purposes of section 359.9, where a corporation, in paragraph b referred to as the “shareholder corporation”, trust or partnership gave consideration under a particular agreement for the issue of a flow-through share of a particular corporation, the particular corporation has, in respect of a renunciation under section 359.2 or 359.2.1 in respect of the share, a prohibited relationship

(a)  with the trust if, at any time after the particular agreement was entered into and before the share is issued to the trust, the particular corporation or any corporation related to it is beneficially interested in the trust;

(b)  with the shareholder corporation if, immediately before the particular agreement was entered into, the shareholder corporation was related to the particular corporation; or

(c)  with the partnership if any part of the amount renounced would, but for the second paragraph of section 359.12, be included, because of paragraph d of section 395, in the Canadian exploration expense of

i.  the particular corporation, or

ii.  any other corporation that, at any time after the particular agreement was entered into and before that part of the amount renounced would, but for this paragraph, be incurred, would, if flow-through shares issued by the particular corporation under agreements entered into at the same time as or after the time the particular agreement was entered into were disregarded, be related to the particular corporation.

1995, c. 49, s. 90; 1996, c. 39, s. 273; 1997, c. 3, s. 71; 1998, c. 16, s. 129.