I-3 - Taxation Act

Section 744 Disposition versions

2006-03-01

744. For the purposes of sections 83 to 85.6, a shareholder who holds a share of the capital stock of a corporation shall, in computing the fair market value of the share at any time, add to that value

(a)  where the shareholder is a corporation, the aggregate of all amounts received by the shareholder on the share before that time each of which is

i.  a taxable dividend, to the extent of the amount of the dividend that was deductible under this Title or section 845 in computing the shareholder’s taxable income for any taxation year, or

ii.  a dividend, other than a taxable dividend;

(b)  where the shareholder is a partnership, the aggregate of all amounts each of which is a dividend received by the shareholder on the share before that time; and

(c)  where the shareholder is an individual and the corporation is resident in Canada, the aggregate of all amounts each of which is a dividend received by the shareholder on the share before that time, or, where the shareholder is a trust, the aggregate of all amounts each of which is a dividend that would have been so received if this Part were read without reference to section 666.

1975, c. 22, s. 206; 1978, c. 26, s. 133; 1984, c. 15, s. 173; 1985, c. 25, s. 126; 1987, c. 67, s. 152; 1993, c. 16, s. 279; 1995, c. 49, s. 170; 1996, c. 39, s. 201; 1997, c. 3, s. 71; 2001, c. 7, s. 95.