I-3 - Taxation Act

Section 485.29 Disposition versions

2019-06-19

485.29. For the purpose of applying this Part to an issuer of a distress preferred share,

(a)  the principal amount, at any time, of the share is deemed to be the amount, determined at that time, for which the share was issued;

(b)  the amount for which the share was issued is, at any time, deemed to be the amount by which the aggregate of the following amounts exceeds the aggregate of all amounts each of which is an amount paid before that time on a reduction of the paid-up capital in respect of the share, except to the extent that the amount is deemed by sections 504 to 510.1 to have been paid as a dividend:

i.  the amount for which the share was issued, determined without reference to this subparagraph, and

ii.  all amounts by which the paid-up capital in respect of the share increased after the share was issued and before that time;

(c)  the share is deemed to be settled at such time as it is redeemed, acquired or cancelled by the issuer; and

(d)  a payment in satisfaction of the principal amount of the share means any payment made on a reduction of the paid-up capital in respect of the share to the extent that the payment is proceeds of disposition of the share within the meaning that would be assigned by section 251 if that section were read without reference to “an amount deemed to be a dividend received under section 508 to the extent that it refers to a dividend deemed paid under sections 505 and 506, except the portion of that amount that is deemed to be included in the proceeds of disposition of the share under paragraph b of section 308.1 or deemed not to be a dividend under paragraph b of section 568.

1996, c. 39, s. 142; 2019, c. 14, s. 144.

2006-03-01

485.29. For the purpose of applying this Part to an issuer of a distress preferred share,

(a)  the principal amount, at any time, of the share is deemed to be the amount, determined at that time, for which the share was issued;

(b)  the amount for which the share was issued is, at any time, deemed to be the amount by which the aggregate of the following amounts exceeds the aggregate of all amounts each of which is an amount paid before that time on a reduction of the paid-up capital in respect of the share, except to the extent that the amount is deemed by sections 504 to 510.1 to have been paid as a dividend:

i.  the amount for which the share was issued, determined without reference to this subparagraph, and

ii.  all amounts by which the paid-up capital in respect of the share increased after the share was issued and before that time;

(c)  the share is deemed to be settled at such time as it is redeemed, acquired or cancelled by the issuer; and

(d)  a payment in satisfaction of the principal amount of the share means any payment made on a reduction of the paid-up capital in respect of the share to the extent that the payment is proceeds of disposition of the share within the meaning that would be assigned by section 251 if that section were read without reference to “an amount deemed to be a dividend received under section 508 to the extent that it refers to a dividend deemed paid under sections 505 and 506 and not deemed not to be a dividend under paragraph a of section 308.1 or under paragraph b of section 568,”.

1996, c. 39, s. 142.