I-3 - Taxation Act

Section 742.3 Disposition versions

2012-05-09

742.3. A qualified dividend that is a taxable dividend received on a share and designated under section 666 by a trust in respect of a beneficiary that was a corporation, partnership or trust is not to be included under subparagraph b of the first paragraph of section 742 or 742.1 where the trust establishes that the dividend was received by an individual (other than a trust), or

(a)  was received when the trust, the beneficiary and persons with whom the beneficiary was not dealing at arm’s length did not own in total more than 5% of the issued shares of any class of the capital stock of the corporation from which the dividend was received; and

(b)  was received on a share that the trust owned throughout the 365-day period that ended immediately before the disposition.

2001, c. 7, s. 92; 2012, c. 8, s. 105.

2006-03-01

742.3. No taxable dividend received on a share and designated under section 666 by a trust in respect of a beneficiary that was a corporation, partnership or trust shall be included under subparagraph b of the first paragraph of section 742 or 742.1 where the trust establishes that the dividend was received by an individual, other than a trust, or

(a)  was received when the trust, the beneficiary and persons with whom the beneficiary was not dealing at arm’s length did not own in total more than 5% of the issued shares of any class of the capital stock of the corporation from which the dividend was received; and

(b)  was received on a share that the trust owned throughout the 365-day period that ended immediately before the disposition.

2001, c. 7, s. 92.