I-3 - Taxation Act

Section 49.2 Disposition versions

2006-03-01

49.2. Where section 49 applies in respect of a security that is a share of the capital stock of a corporation, it shall be read with the words “in which the employee acquires the security” replaced by the words “in which the employee disposes of or exchanges the security” where

(a)  the agreement contemplated in section 48 is made with a particular Canadian-controlled private corporation that has agreed to sell or issue a share of its capital stock or of the capital stock of a Canadian-controlled private corporation with which it is not dealing at arm’s length, to one of its employees or to an employee of a Canadian-controlled private corporation with which it does not deal at arm’s length;

(b)  the share is acquired by an employee who, at the time immediately after the agreement was made, was dealing at arm’s length with the particular corporation, the Canadian-controlled private corporation, the share of the capital stock of which has been agreed to be sold or issued by the particular corporation, and the Canadian-controlled private corporation that is the employer of the employee.

1986, c. 15, s. 40; 1987, c. 67, s. 11; 1988, c. 4, s. 22; 1992, c. 1, s. 17; 1997, c. 3, s. 18; 1998, c. 16, s. 68; 2001, c. 53, s. 16.