I-3 - Taxation Act

Section 597.0.12 Disposition versions

2015-12-04

597.0.12. A particular property that is, or will be, at a particular time held, loaned or transferred by a particular person or partnership is not restricted property held, loaned or transferred, as the case may be, at that time by the particular person or partnership if

(a)  the particular property is property in respect of which the conditions of paragraph a of subsection 14 of section 94 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)) are met in respect of the particular person or partnership; or

(b)  at the particular time

i.  the particular property is

(1)  a share of the capital stock of a corporation,

(2)  a fixed interest in a trust, or

(3)  an interest, as a member of a partnership, under which, by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited,

ii.  there are at least 150 persons each of whom holds at the particular time property that at that time

(1)  is identical to the particular property, and

(2)  has a total fair market value of at least $500,

iii.  the aggregate of all amounts each of which is the fair market value, at the particular time, of the particular property (or of identical property that is held, at that time, by the particular person or partnership or a person with whom the particular person or partnership does not deal at arm’s length) does not exceed 10% of the aggregate of all amounts each of which is the fair market value, at the particular time, of the particular property or of identical property held by any person or partnership,

iv.  property that is identical to the particular property can normally be acquired by and sold by members of the public in the open market, and

v.  the particular property, or identical property, is listed on a designated stock exchange.

Chapter V.2 of Title II of Book I applies in relation to property identified by a particular person or partnership for the purposes of subparagraph iii of paragraph a of subsection 14 of section 94 of the Income Tax Act.

2015, c. 36, s. 29.