I-3 - Taxation Act

Section 517.4.3 Disposition versions

2006-03-01

517.4.3. For the purposes of sections 517.4.1 and 517.4.2,

(a)  where at any time a corporation issues a share of its capital stock to a taxpayer, the taxpayer and the issuing corporation are deemed not to be dealing with each other at arm’s length at that time;

(b)  where a taxpayer is deemed, because of subparagraph a of the first paragraph of section 726.9.2, to have reacquired a share, the taxpayer is deemed to have acquired the share at the beginning of 23 February 1994 from a person with whom the taxpayer was not dealing at arm’s length; and

(c)  where a share owned by a particular person, or a share substituted for that share, has by one or more transactions or events between persons not dealing at arm’s length become vested in another person, the particular person and the other person are deemed at all times not to be dealing at arm’s length with each other whether or not the particular person and the other person coexisted.

1987, c. 67, s. 122; 1997, c. 3, s. 71; 2001, c. 7, s. 52.