I-3 - Taxation Act

Section 776.18 Disposition versions

2006-03-01

776.18. For the purposes of this Part, where in a taxation year a corporation has acquired and is the first holder of a qualifying security in respect of which an amount was designated by another corporation under subsection 4 of section 194 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), the cost to the corporation of the security is deemed to be that provided for in the second paragraph.

The cost to a corporation of a qualifying security contemplated in the first paragraph is equal to the amount by which

(a)  its costs as otherwise determined to the corporation contemplated therein exceeds

(b)  50% of the designated amount contemplated therein in respect of the security.

1985, c. 25, s. 134; 1997, c. 3, s. 71.