I-3 - Taxation Act

Section 573 Disposition versions

2006-03-01

573. For the purposes of this Title, the equity percentage of a taxpayer at any time in a particular corporation is the aggregate of his direct and indirect equity percentages in the corporation at that time, computed according to the following rules:

(a)  his direct equity percentage at that time is that percentage which is not less than any other percentage representing the proportion that the number of shares of each class of the capital stock of the corporation then owned by him is of the total number of issued shares of that class at the same time;

(b)  his indirect equity percentage at that time is the aggregate of all percentages each of which is the product then obtained when the taxpayer’s equity percentage in any corporation is multiplied by that corporation’s direct equity percentage in the particular corporation.

However, for the purposes of section 574, subparagraph b of the first paragraph must read as if the expression “any corporation” were replaced by the expression “any corporation not resident in Canada”.

1972, c. 23, s. 444; 1975, c. 22, s. 152; 1977, c. 26, s. 64; 1997, c. 3, s. 71.