I-3 - Taxation Act

Section 502.0.3 Disposition versions

2006-03-01

502.0.3. Section 502.0.1 does not apply in respect of a dividend, in respect of which an election is made under section 502, paid on a share of the capital stock of a corporation where it is reasonable to consider that the purpose of paying the dividend was to distribute an amount that was received by the corporation and included in computing its capital dividend account, as determined under section 89 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) and without reference to paragraph b of section 570, by reason of paragraph d of the definition of “capital dividend account” in subsection 1 of section 89 of the said Act.

1990, c. 59, s. 181; 1995, c. 49, s. 135; 1996, c. 39, s. 273; 1997, c. 3, s. 71.