I-3 - Taxation Act

Section 796.14 Disposition versions

2021-06-02

796.14. The rules to which section 796.13 refers in respect of an eligible trust’s exchange of an old share for a new share are as follows:

(a)  the old share is deemed to be disposed of by the eligible trust for proceeds of disposition equal to its cost amount to the eligible trust;

(b)  the new share acquired for the old share referred to in paragraph a is deemed to be acquired for a cost equal to the amount referred to in that paragraph;

(c)  where the old share is an eligible share, the new share is deemed to be an eligible share; and

(d)  where new shares are deemed to be eligible shares because of paragraph c and those shares are included in a class that includes other shares that are not eligible shares, those eligible shares are deemed to have been issued in a separate series of the class and the other shares are deemed to have been issued in a separate series of the class.

2021, c. 14, s. 101.