I-3 - Taxation Act

Section 551 Disposition versions

2006-03-01

551. This division applies to a taxpayer who, immediately before an amalgamation, owned a capital property that was a share of the capital stock of a predecessor corporation, an option to acquire such a share, or a bond, a debenture, a hypothecary claim, a mortgage, a note or other similar obligation of such corporation and who received from the new corporation, by reason of such amalgamation, no consideration for the disposition of such capital property other than a property that is, as the case may be, a share of the capital stock of the new corporation, an option to acquire such share, a bond, a debenture, a hypothecary claim, a mortgage, a note or another similar obligation, respectively, of the new corporation.

However, this division does not apply if the taxpayer is himself a predecessor corporation or if the amount payable on the maturity of the bond, debenture, hypothecary claim, mortgage, note or other similar obligation received as consideration for the capital property disposed of on the amalgamation is not the same as the amount that would have been payable on the maturity of such capital property disposed of.

1972, c. 23, s. 429; 1975, c. 22, s. 130; 1996, c. 39, s. 152; 1997, c. 3, s. 71; 2005, c. 1, s. 120.