Consolidated Statutes and Regulations
Consolidated Statutes
Consolidated Regulations
Annual Statutes and Regulations
Annual Statutes
Annual Regulations
Additional information
Québec Official Publisher
What’s new?
Information note
Policy of the Minister of Justice
Laws: Amendments
Laws: Provisions not in force
Laws: Provisions brought into force
Annual Statutes: PDF versions since 1996
Regulations: Amendments
Annual Regulations: PDF versions since 1996
Court Decisions
I-3 - Taxation Act
Section 776.1.5.0.7
Disposition versions
776.1.5.0.7. Where at a particular time a corporation referred to in section 776.1.1 redeems original shares in the circumstances described in the second paragraph of section 776.1.5.0.6, the individual shall, in a particular taxation year or within 60 days after the end of that year that begins after 31 December 2000, acquire replacement shares for an amount determined by the formula
[(A − B)/(10 − C)].
In the formula provided for in the first paragraph,
(a) A is
i. an amount equal to zero where
(1) the individual died or ceased to be resident in Canada in the particular taxation year, or
(2) the beginning of the particular taxation year is not included in a repayment period of the individual, and
ii. in any other case, the aggregate of all eligible amounts of the individual received by the individual in taxation years preceding the particular taxation year, other than taxation years included in participation periods of the individual that ended before the particular taxation year;
(b) B is the aggregate of all amounts each of which is
i. an amount paid by the individual on the acquisition of replacement shares in a taxation year preceding the particular taxation year or within 60 days after the end of that preceding year, other than a taxation year included in a participation period of the individual that ended before the particular taxation year,
ii. 100/15 of an amount that the individual is required to pay under section 1086.20 for a taxation year preceding the particular taxation year, other than a taxation year included in a participation period of the individual that ended before the particular taxation year, in respect of replacement shares that were not acquired by the individual and that relate to original shares other than original shares described in subparagraph iii or iv,
iii. 400% of an amount that the individual is required to pay under section 1086.20 for a taxation year preceding the particular taxation year, other than a taxation year included in a participation period of the individual that ended before the particular taxation year, in respect of replacement shares that were not acquired by the individual and that relate to original shares referred to in paragraph b of section 776.1.1 and acquired by the individual in the period specified in the second paragraph of section 776.1.1.1, or
iv. 500% of an amount that the individual is required to pay under section 1086.20 for a taxation year preceding the particular taxation year, other than a taxation year included in a participation period of the individual that ended before the particular taxation year, in respect of replacement shares that were not acquired by the individual and that relate to original shares referred to in paragraph b of section 776.1.1 and acquired by the individual in the period specified in the second paragraph of section 776.1.1.2; and
(c) C is the lesser of nine and the number of taxation years of the individual that end in the period that begins at the beginning of the last repayment period of the individual that began at or before the beginning of the particular year and that ends at the beginning of the particular year.
Where the Minister so directs, an individual who, in a taxation year, pays an amount, other than an amount paid in the first 60 days of the year, for the acquisition of replacement shares, is deemed to have paid that amount at the beginning of the year and not at the time it was actually paid.
776.1.5.0.7. Where at a particular time a corporation referred to in section 776.1.1 redeems original shares in the circumstances described in the second paragraph of section 776.1.5.0.6, the individual shall, in a particular taxation year or within 60 days after the end of that year that begins after 31 December 2000, acquire replacement shares for an amount determined by the formula
[(A − B)/(10 − C)].
In the formula provided for in the first paragraph,
(a) A is
i. an amount equal to zero where
(1) the individual died or ceased to be resident in Canada in the particular taxation year, or
(2) the beginning of the particular taxation year is not included in a repayment period of the individual, and
ii. in any other case, the aggregate of all eligible amounts of the individual received by the individual in taxation years preceding the particular taxation year, other than taxation years included in participation periods of the individual that ended before the particular taxation year;
(b) B is the aggregate of all amounts each of which is
i. an amount paid by the individual on the acquisition of replacement shares in a taxation year preceding the particular taxation year or within 60 days after the end of that preceding year, other than a taxation year included in a participation period of the individual that ended before the particular taxation year,
ii. 100/15 of an amount that the individual is required to pay under section 1086.20 for a taxation year preceding the particular taxation year, other than a taxation year included in a participation period of the individual that ended before the particular taxation year, in respect of replacement shares that were not acquired by the individual and that relate to original shares other than original shares described in subparagraph iii, or
iii. 400% of an amount that the individual is required to pay under section 1086.20 for a taxation year preceding the particular taxation year, other than a taxation year included in a participation period of the individual that ended before the particular taxation year, in respect of replacement shares that were not acquired by the individual and that relate to original shares referred to in paragraph b of section 776.1.1 and acquired by the individual in the period specified in the second paragraph of section 776.1.1.1; and
(c) C is the lesser of nine and the number of taxation years of the individual that end in the period that begins at the beginning of the last repayment period of the individual that began at or before the beginning of the particular year and that ends at the beginning of the particular year.
Where the Minister so directs, an individual who, in a taxation year, pays an amount, other than an amount paid in the first 60 days of the year, for the acquisition of replacement shares, is deemed to have paid that amount at the beginning of the year and not at the time it was actually paid.
776.1.5.0.7. Where at a particular time a corporation referred to in section 776.1.1 redeems original shares in the circumstances described in the second paragraph of section 776.1.5.0.6, the individual shall, in a particular taxation year or within 60 days after the end of that year that begins after 31 December 2000, acquire replacement shares for an amount determined by the formula
[(A − B)/(10 − C)].
In the formula provided for in the first paragraph,
(a) A is
i. an amount equal to zero where
(1) the individual died or ceased to be resident in Canada in the particular taxation year, or
(2) the beginning of the particular taxation year is not included in a repayment period of the individual, and
ii. in any other case, the aggregate of all eligible amounts of the individual received by the individual in taxation years preceding the particular taxation year, other than taxation years included in participation periods of the individual that ended before the particular taxation year;
(b) B is the aggregate of all amounts paid by the individual on the acquisition of replacement shares in taxation years preceding the particular taxation year or within the first 60 days after the end of those years, other than taxation years included in participation periods of the individual that ended before the particular year; and
(c) C is the lesser of nine and the number of taxation years of the individual that end in the period that begins at the beginning of the last repayment period of the individual that began at or before the beginning of the particular year and that ends at the beginning of the particular year.
Where the Minister so directs, an individual who, in a taxation year, pays an amount, other than an amount paid in the first 60 days of the year, for the acquisition of replacement shares, is deemed to have paid that amount at the beginning of the year and not at the time it was actually paid.
