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I-3 - Taxation Act
Section 785.4
Disposition versions
785.4. In this Title,
“first post-exchange year” of a fund in respect of a qualifying exchange means the fund’s taxation year that begins immediately after the acquisition time;
“qualifying exchange” means a transfer at any time (in this Title referred to as the “transfer time”) if
(a) the transfer is a transfer of all or substantially all of the property (including an exchange of a unit of a mutual fund trust for another unit of that trust) of
i. a mutual fund corporation (other than a SIFT wind-up corporation) to one or more mutual fund trusts, or
ii. a particular mutual fund trust to another mutual fund trust;
(b) all or substantially all of the shares issued by the mutual fund corporation referred to in subparagraph i of paragraph a or the particular mutual fund trust referred to in subparagraph ii of paragraph a (in this Title referred to as the “transferor” or the “funds”) and outstanding immediately before the transfer time are within 60 days after the transfer time disposed of to the transferor;
(c) no person disposing of shares of the transferor to the transferor within that 60-day period (otherwise than pursuant to the exercise of a statutory right of dissent) receives any consideration for the shares other than units of one or more mutual fund trusts referred to in subparagraph i of paragraph a or the other mutual fund trust referred to in subparagraph ii of paragraph a (in this Title referred to as the “transferee” or the “funds”);
(d) if property of the transferor has been transferred to more than one transferee,
i. all shares of each class of shares, that is recognized under securities legislation as or as part of an investment fund, of the transferor are disposed of to the transferor within 60 days after the transfer time, and
ii. the units received in consideration for a share of a class of shares, that is recognized under securities legislation as or as part of an investment fund, of the transferor are units of the transferee to which all or substantially all of the assets that were allocated to that investment fund immediately before the transfer time were transferred; and
(e) the funds make a valid election under paragraph e of the definition of “qualifying exchange” in subsection 1 of section 132.2 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) in respect of the transfer;
Where this Title applies in respect of a transfer, the prescribed form along with a copy of every document sent to the Minister of National Revenue in respect of the transfer, in connection with the election referred to in paragraph e of the definition of “qualifying exchange” in the first paragraph, must be sent to the Minister on or before the last day of the six-month period following the end of the transferor’s taxation year that includes the due date of the election in respect of the transfer, within the meaning of subsection 6 of section 132.2 of the Income Tax Act, or, if it is later, the last day of the two-month period following the end of such a taxation year of the transferee.
785.4. In this Title,
“first post-exchange year” of a fund in respect of a qualifying exchange means the fund’s taxation year that begins immediately after the acquisition time;
“qualifying exchange” means a transfer at any time, referred to in this Title as the “transfer time”, of all or substantially all of the property of a mutual fund corporation (other than a SIFT wind-up corporation) or mutual fund trust to a mutual fund trust, referred to in this Title as the “transferor” or “transferee”, respectively, and as the “funds”, where
(a) all or substantially all of the shares issued by the transferor and outstanding immediately before the transfer time are within 60 days after the transfer time disposed of to the transferor;
(b) no person disposing of shares in the transferor to the transferor within that 60-day period, otherwise than pursuant to the exercise of a statutory right of dissent, receives any consideration for the shares other than units of the transferee; and
(c) the funds make a valid election under paragraph c of the definition of “qualifying exchange” in subsection 1 of section 132.2 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)) in respect of the transfer;
Where this Title applies in respect of a transfer, the prescribed form along with a copy of every document sent to the Minister of National Revenue in respect of the transfer, in connection with the election referred to in paragraph c of the definition of “qualifying exchange” in the first paragraph, must be sent to the Minister on or before the last day of the six-month period following the end of the transferor’s taxation year that includes the due date of the election in respect of the transfer, within the meaning of subsection 6 of section 132.2 of the Income Tax Act, or, if it is later, the last day of the two-month period following the end of such a taxation year of the transferee.
785.4. In this Title,
“qualifying exchange” means a transfer at any time, referred to in this Title as the “transfer time”, of all or substantially all of the property of a mutual fund corporation (other than a SIFT wind-up corporation) or mutual fund trust to a mutual fund trust, referred to in this Title as the “transferor” or “transferee”, respectively, and as the “funds”, where
(a) all or substantially all of the shares issued by the transferor and outstanding immediately before the transfer time are within 60 days after the transfer time disposed of to the transferor;
(b) no person disposing of shares in the transferor to the transferor within that 60-day period, otherwise than pursuant to the exercise of a statutory right of dissent, receives any consideration for the shares other than units of the transferee; and
(c) the funds make a valid election under paragraph c of the definition of “qualifying exchange” in subsection 2 of section 132.2 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) in respect of the transfer;
Where this Title applies in respect of a transfer, the prescribed form along with a copy of every document sent to the Minister of Revenue of Canada in respect of the transfer, in connection with the election referred to in paragraph c of the definition of “qualifying exchange” in the first paragraph, shall be sent to the Minister on or before the later of the last day of the six-month period following the end of the taxation year of the transferor in which the transfer was made and the last day of the two-month period following the end of that taxation year of the transferee.
785.4. In this Title,
“qualifying exchange” means a transfer at any time, referred to in this Title as the “transfer time”, of all or substantially all of the property of a mutual fund corporation or mutual fund trust to a mutual fund trust, referred to in this Title as the “transferor” or “transferee”, respectively, and as the “funds”, where
(a) all or substantially all of the shares issued by the transferor and outstanding immediately before the transfer time are within 60 days after the transfer time disposed of to the transferor,
(b) no person disposing of shares in the transferor to the transferor within that 60-day period, otherwise than pursuant to the exercise of a statutory right of dissent, receives any consideration for the shares other than units of the transferee, and;
(c) the funds make a valid election under paragraph c of the definition of “qualifying exchange” in subsection 2 of section 132.2 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) in respect of the transfer;
Where this Title applies in respect of a transfer, the prescribed form along with a copy of every document sent to the Minister of Revenue of Canada in respect of the transfer, in connection with the election referred to in paragraph c of the definition of “qualifying exchange” in the first paragraph, shall be sent to the Minister on or before the later of the last day of the six-month period following the end of the taxation year of the transferor in which the transfer was made and the last day of the two-month period following the end of that taxation year of the transferee.
