I-3 - Taxation Act

Section 49.5 Disposition versions

2011-12-09

49.5. For the purposes of this division and sections 725.2, 725.2.2 and 725.3, where a taxpayer disposes of or exchanges securities of a particular qualifying person that were acquired by the taxpayer under circumstances to which section 49.2 applied, in this section referred to as the “exchanged securities”, the taxpayer receives no consideration for the disposition or exchange of the exchanged securities other than securities, in this section referred to as the “new securities” of any of the persons described in the second paragraph, and the total value of the new securities immediately after the disposition or exchange does not exceed the total value of the exchanged securities immediately before the disposition or exchange, the following rules apply:

(a)  the taxpayer is deemed not to have exchanged or disposed of the exchanged securities and not to have acquired the new securities;

(b)  the new securities are deemed to be the same securities as, and a continuation of, the exchanged securities, except for the purpose of determining if the new securities are identical to any other securities;

(c)  the qualifying person that issued the new securities is deemed to be the same person as, and a continuation of, the qualifying person that issued the exchanged securities; and

(d)  where the exchanged securities were issued under an agreement, the new securities are deemed to have been issued under that agreement.

The persons to which the first paragraph refers are the following:

(a)  the particular qualifying person;

(b)  a qualifying person with which the particular qualifying person does not deal at arm’s length immediately after the disposition or exchange of the exchanged securities;

(c)  a corporation formed on the amalgamation or merger of the particular qualifying person and one or more other corporations;

(d)  a qualifying person with which the corporation referred to in subparagraph c does not deal at arm’s length immediately after the disposition or exchange of the exchanged securities; and

(e)  a mutual fund trust to which the particular qualifying person has transferred property in circumstances to which Title I.2 of Book VI applied.

1986, c. 19, s. 8; 1987, c. 67, s. 13; 1992, c. 1, s. 18; 1993, c. 16, s. 30; 1995, c. 49, s. 29; 1997, c. 3, s. 71; 2003, c. 2, s. 19; 2011, c. 34, s. 19.

2006-03-01

49.5. For the purposes of this division and sections 725.2, 725.2.2 and 725.3, where a taxpayer disposes of or exchanges securities of a particular qualifying person that were acquired by the taxpayer under circumstances to which section  49.2 or 58.0.1 applied, in this section referred to as the “exchanged securities”, the taxpayer receives no consideration for the disposition or exchange of the exchanged securities other than securities, in this section referred to as the “new securities” of any of the persons described in the second paragraph, and the total value of the new securities immediately after the disposition or exchange does not exceed the total value of the exchanged securities immediately before the disposition or exchange, the following rules apply:

(a)  the taxpayer is deemed not to have exchanged or disposed of the exchanged securities and not to have acquired the new securities;

(b)  the new securities are deemed to be the same securities as, and a continuation of, the exchanged securities, except for the purpose of determining if the new securities are identical to any other securities;

(c)  the qualifying person that issued the new securities is deemed to be the same person as, and a continuation of, the qualifying person that issued the exchanged securities; and

(d)  where the exchanged securities were issued under an agreement, the new securities are deemed to have been issued under that agreement.

The persons to which the first paragraph refers are the following:

(a)  the particular qualifying person;

(b)  a qualifying person with which the particular qualifying person does not deal at arm’s length immediately after the disposition or exchange of the exchanged securities;

(c)  a corporation formed on the amalgamation or merger of the particular qualifying person and one or more other corporations;

(d)  a qualifying person with which the corporation referred to in subparagraph c does not deal at arm’s length immediately after the disposition or exchange of the exchanged securities, and

(e)  a mutual fund trust to which the particular qualifying person has transferred property in circumstances to which Title I.2 of Book VI applied.

1986, c. 19, s. 8; 1987, c. 67, s. 13; 1992, c. 1, s. 18; 1993, c. 16, s. 30; 1995, c. 49, s. 29; 1997, c. 3, s. 71; 2003, c. 2, s. 19.