I-3 - Taxation Act

Section 509 Disposition versions

2006-03-01

509. For the purposes of sections 505 to 508, where the property referred to in section 505 or the amount paid by the corporation and referred to in section 506 or 507 includes a share of the capital stock of that corporation, the following rules apply:

(a)  in computing the value of that property at any time, the share must be valued at an amount equal to its paid-up capital at that time; and

(b)  in computing that amount at any time, the share must be valued at an amount equal to the amount by which the paid-up capital in respect of the class of shares in which it is comprised has increased by virtue of its issue.

1972, c. 23, s. 403; 1978, c. 26, s. 91; 1997, c. 3, s. 71.