I-3 - Taxation Act

Section 560.1.3 Disposition versions

2015-10-26

560.1.3. For the purposes of section 560.1.2, a specified property is

(a)  a share of the capital stock of the parent that was received as consideration for the acquisition of a share of the capital stock of the subsidiary by the parent or by a corporation that was a specified subsidiary corporation of the parent immediately before the acquisition, or issued for consideration that consists solely of money;

(b)  an indebtedness that was issued by the parent as consideration for the acquisition of a share of the capital stock of the subsidiary by the parent, or for consideration that consists solely of money;

(c)  a share of the capital stock of a taxable Canadian corporation that was received as consideration for the acquisition of a share of the capital stock of the subsidiary by the taxable Canadian corporation or by the parent where the parent was a specified subsidiary corporation of the taxable Canadian corporation immediately before the acquisition;

(d)  an indebtedness of a taxable Canadian corporation that was issued by it as consideration for the acquisition of a share of the capital stock of the subsidiary by the taxable Canadian corporation or by the parent where the parent was a specified subsidiary corporation of the taxable Canadian corporation immediately before the acquisition; or

(e)  where the subsidiary was formed on the amalgamation of two or more particular corporations at least one of which was a subsidiary wholly-owned corporation of the parent,

i.  a share of the capital stock of the subsidiary that was issued on the amalgamation and that is, before the beginning of the winding-up, redeemed, acquired or cancelled by the subsidiary for consideration that consists solely of money or shares of the capital stock of the parent, or of any combination of the two, or exchanged for shares of the capital stock of the parent, or

ii.  a share of the capital stock of the parent issued on the amalgamation in exchange for a share of the capital stock of one of the particular corporations.

For the purposes of the first paragraph, the following rules apply:

(a)  a corporation is a specified subsidiary corporation of another corporation, at a particular time, where the other corporation holds, at that time, shares of the corporation

i.  that give the shareholder 90% or more of the votes that could be cast under all circumstances at an annual meeting of shareholders of the corporation, and

ii.  having a fair market value of 90% or more of the fair market value of all the issued shares of the capital stock of the corporation; and

(b)  a reference to a share of the capital stock of a corporation includes a right to acquire a share of the capital stock of the corporation.

2000, c. 5, s. 128; 2015, c. 24, s. 87.

2006-03-01

560.1.3. For the purposes of section 560.1.2, a specified property is

(a)  a share of the capital stock of the parent that was received as consideration for the acquisition of a share of the capital stock of the subsidiary by the parent or by a corporation that was a specified subsidiary corporation of the parent immediately before the acquisition;

(b)  an indebtedness that was issued by the parent as consideration for the acquisition of a share of the capital stock of the subsidiary by the parent;

(c)  a share of the capital stock of a taxable Canadian corporation that was received as consideration for the acquisition of a share of the capital stock of the subsidiary by the taxable Canadian corporation or by the parent where the parent was a specified subsidiary corporation of the taxable Canadian corporation immediately before the acquisition;

(d)  an indebtedness of a taxable Canadian corporation that was issued by it as consideration for the acquisition of a share of the capital stock of the subsidiary by the taxable Canadian corporation or by the parent where the parent was a specified subsidiary corporation of the taxable Canadian corporation immediately before the acquisition; or

(e)  where the subsidiary was formed on the amalgamation of two or more particular corporations at least one of which was a subsidiary wholly-owned corporation of the parent, a share of the capital stock of the subsidiary that was issued on the amalgamation in exchange for a share of the capital stock of a particular corporation and that was, immediately after the amalgamation, redeemed, acquired or cancelled by the subsidiary for money and, where the subsidiary was formed on the amalgamation of two or more particular corporations at least one of which was a subsidiary wholly-owned corporation of the parent, a share of the capital stock of the parent that was issued on the amalgamation in exchange for a share of the capital stock of a particular corporation and that was, immediately after the amalgamation, redeemed, acquired or cancelled by the parent for money.

For the purposes of the first paragraph, a corporation is a specified subsidiary corporation of another corporation, at a particular time, where the other corporation holds, at that time, shares of the corporation

(a)  that give the shareholder 90% or more of the votes that could be cast under all circumstances at an annual meeting of shareholders of the corporation; and

(b)  having a fair market value of 90% or more of the fair market value of all the issued shares of the capital stock of the corporation.

2000, c. 5, s. 128.