I-3 - Taxation Act

Section 716.0.5 Disposition versions

2012-05-09

716.0.5. Section 716.0.6 applies if

(a)  an option to acquire a property of a corporation is granted to a qualified donee;

(b)  the option is exercised so that the property is disposed of by the corporation and acquired by the qualified donee at a particular time; and

(c)  either

i.  the amount that is 80% of the fair market value of the property at the particular time is greater than or equal to the aggregate of

(1)  the consideration received by the corporation from the qualified donee for the property, and

(2)  the consideration received by the corporation from the qualified donee for the option, or

ii.  the corporation establishes to the satisfaction of the Minister that the granting of the option or the disposition of the property was made by the corporation with the intention to make a gift to the qualified donee.

2012, c. 8, s. 66.