I-3 - Taxation Act

Section 560.2 Disposition versions

2012-05-09

560.2. For the purposes of this paragraph and sections 559 and 560, the time at which a particular person or group of persons last acquired control of a subsidiary is, where control of the subsidiary was acquired from another person or group of persons, in this paragraph referred to as the “vendor”, with whom the particular person or group of persons was not dealing at arm’s length otherwise than solely because of a right referred to in paragraph b of section 20, deemed to be the earlier of

(a)  the time at which the vendor last acquired control, within the meaning of subparagraph b of the first paragraph of section 739, with the necessary modifications, of the subsidiary; and

(b)  the time at which the vendor is deemed for the purposes of this paragraph to have last acquired control of the subsidiary.

For the purposes of the first paragraph and sections 559 and 560, where control of a corporation is last acquired by a particular person or group of persons because of an acquisition of shares of the capital stock of the corporation as a consequence of the death of an individual, the particular person or group of persons is deemed to have last acquired control of the corporation immediately after the death from a person who dealt at arm’s length with the particular person or group of persons.

For the purposes of the first and second paragraphs and sections 559, 560 and 560.1.1 to 560.1.4, the following rules apply:

(a)  subject to subparagraph c, control of any corporation is deemed not to have been acquired by reason of an amalgamation;

(b)  any corporation formed as a result of an amalgamation is deemed to be the same corporation as, and a continuation of, each predecessor corporation; and

(c)  in the case of a merger contemplated in section 555.1, where the parent did not have control of a predecessor corporation prior to the merger, the parent is deemed to have acquired control immediately before the merger.

1980, c. 13, s. 58; 1984, c. 15, s. 119; 1985, c. 25, s. 99; 1993, c. 16, s. 223; 1994, c. 22, s. 205; 1995, c. 49, s. 145; 1995, c. 63, s. 261; 1997, c. 3, s. 71; 2000, c. 5, s. 129; 2004, c. 8, s. 115; 2012, c. 8, s. 56.

2006-03-01

560.2. For the purposes of this paragraph and sections 559 and 560, the time at which a particular person or group of persons last acquired control of a subsidiary is, where control of the subsidiary was acquired from another person or group of persons, in this paragraph referred to as the “vendor”, with whom the particular person or group of persons was not dealing at arm’s length otherwise than solely because of a right referred to in paragraph b of section 20, deemed to be the earlier of

(a)  the time at which the vendor last acquired control, within the meaning of paragraph b of section 739, with the necessary modifications, of the subsidiary; and

(b)  the time at which the vendor is deemed for the purposes of this paragraph to have last acquired control of the subsidiary.

For the purposes of the first paragraph and sections 559 and 560, where control of a corporation is last acquired by a particular person or group of persons because of an acquisition of shares of the capital stock of the corporation as a consequence of the death of an individual, the particular person or group of persons is deemed to have last acquired control of the corporation immediately after the death from a person who dealt at arm’s length with the particular person or group of persons.

For the purposes of the first and second paragraphs and sections 559, 560 and 560.1.1 to 560.1.4, the following rules apply:

(a)  subject to subparagraph c, control of any corporation is deemed not to have been acquired by reason of an amalgamation;

(b)  any corporation formed as a result of an amalgamation is deemed to be the same corporation as, and a continuation of, each predecessor corporation; and

(c)  in the case of a merger contemplated in section 555.1, where the parent did not have control of a predecessor corporation prior to the merger, the parent is deemed to have acquired control immediately before the merger.

1980, c. 13, s. 58; 1984, c. 15, s. 119; 1985, c. 25, s. 99; 1993, c. 16, s. 223; 1994, c. 22, s. 205; 1995, c. 49, s. 145; 1995, c. 63, s. 261; 1997, c. 3, s. 71; 2000, c. 5, s. 129; 2004, c. 8, s. 115.